Gold-Backed Crypto Tokens See Five-Year High in Minting Amid Tariff Turmoil and Record Gold Futures
The issuance of commodity-backed cryptocurrencies—primarily those tied to gold—has surged to a five-year high this week, driven by market volatility and geopolitical uncertainty surrounding U.S. tariffs.
According to data from RWA.xyz, more than $439 million worth of gold-backed tokens were minted over the past week, more than double the previous high of $195 million set in 2021.
The sharp increase follows a record rally in gold futures, which briefly crossed $3,500, fueled by fears over the potential impact of a 39% U.S. tariff on gold imports from Switzerland. The Swiss Precious Metals Association warned that the tariffs could disrupt the international movement of physical gold.
Although both gold spot and futures prices retreated after a White House official clarified that gold bars would likely be exempt from the policy, the initial surge drove significant minting activity. Tokens like Tether Gold (XAUT) and Paxos Gold (PAXG) spiked to over $3,390 before easing back.
Gold-backed cryptocurrencies allow investors to gain exposure to the underlying asset without crossing borders or relying on traditional custody. These tokens are fully backed by gold reserves stored in vaults and offer real-time settlement on blockchain networks.
Switzerland plays a central role in the global gold ecosystem, refining a large share of the world’s supply despite having no domestic mines. In the past year alone, the country exported more than $61 billion in gold to the United States. Gold accounts for over 25% of Swiss exports, according to the Swiss National Bank.
The tariff threat has sparked domestic backlash, with some Swiss lawmakers urging the gold industry to share in the economic burden. Meanwhile, investors appear to be hedging against policy risk by turning to tokenized commodities as a more flexible store of value.
