Tokenized Gold Market Nears $3B as Bullion Blasts to Fresh Record Highs

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Markets

What You Need to Know (If You’re Still Reading):

  • The tokenized gold market has skyrocketed to around $2.9 billion, as the yellow metal does its best impersonation of a rock star, setting new record highs.
  • Tether Gold (XAUT) and PAX Gold (PAXG) tokens smashed records in September, hitting a massive $3.2 billion in monthly volumes, with PAXG also charming a $40 million net inflow-just a casual drop in the bucket, right?
  • What’s behind this golden party? Well, it’s a cocktail of Fed policy, inflationary whispers, and the looming possibility of a U.S. government shutdown. Because nothing says “reliable asset” like a potentially chaotic political scene.

Gold’s rally, like an overzealous puppy, has accelerated faster than a race car on steroids. Spot prices have now burst through the $3,800-per-ounce mark, setting yet another all-time record and extending a year that’s been nearly as hot as a summer day in the Sahara-bullion’s up a sizzling 47% year-to-date. Who knew metal could be this exciting?

And the best part? This gleaming surge isn’t just confined to the old-fashioned shiny bars of metal. No, it’s spilled over into the world of crypto, where gold-backed tokens have reached a stunning $2.88 billion market cap. These tokens, backed by actual gold (yes, it’s real!), settle on blockchain rails, offering trading 24/7 and transfers that are faster than a cheetah on roller skates.

Enter Paxos and Tether, the masterminds behind XAUT and PAXG, tokens that are now more popular than a free buffet at a business conference. XAUT’s market cap is currently hovering around $1.43 billion, while PAXG isn’t far behind at $1.12 billion. Both are having a good year, thanks to the surging prices of gold. They should probably be sending thank-you notes to the metal itself.

Speaking of liquidity, it’s been a party all around. PAXG saw over $40 million in net inflows in September alone, and set a fresh record for monthly trading volume, surpassing $3.2 billion. Not to be outdone, XAUT recorded a whopping $3.25 billion in monthly volume, all without any new tokens being minted. Seems like they’re doing just fine on their own-thank you very much.

And the fun doesn’t stop there. The tokenized gold market could continue its golden streak as macro conditions remain as favorable as a sunny day at the beach. Investors are eyeing potential Federal Reserve rate cuts, a weaker U.S. dollar, and-let’s not forget-the growing anxiety over a possible government shutdown in the U.S. Meanwhile, Bitcoin, often referred to as “digital gold,” seems to be sitting in the backseat with a modest 22% return year-to-date. It’s almost as if gold is the cool kid at the party, and Bitcoin’s just happy to tag along.

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2025-09-29 22:59