TLDR
- Tokenized gold market capitalization reached $2.88 billion on September 29, 2025, a new all-time high
- XAUT and PAXG each processed over $3.2 billion in trading volume during September 2025
- PAX Gold received $40 million in net inflows while gold prices climbed above $3,800 per ounce
- Gold returned 47% year-to-date versus Bitcoin’s 22% gain over the same time period
- Rate cut expectations, inflation concerns, and government shutdown fears pushed gold prices higher
The tokenized gold market achieved a new milestone on September 29, reaching $2.88 billion in total market capitalization. The record came as physical gold prices crossed $3,800 per ounce for the first time.
Blockchain-based gold tokens provide investors with digital access to physical bullion. Each token represents actual gold stored in secure vaults. Investors can trade these tokens 24 hours a day on cryptocurrency exchanges.
Tether Gold (XAUT) leads the market with $1.43 billion in market cap. PAX Gold (PAXG) follows closely at $1.12 billion. Both tokens reached their highest market values ever recorded.
Record Trading Volumes Across Major Gold Tokens
September trading activity broke previous records for both leading tokens. PAXG registered $3.2 billion in monthly trading volume. XAUT matched this figure with $3.25 billion in turnover.
PAX Gold attracted $40 million in net inflows during the month. New investors purchased tokens as gold prices climbed. XAUT’s market cap grew purely from price increases, with no new token minting in September.
The previous month saw different dynamics. August recorded $437 million in new XAUT token creation. September’s organic growth highlights strong investor interest without additional supply.
Gold tokens offer advantages over physical bullion ownership. Transfers complete in minutes rather than days. Storage costs are lower than traditional vault services. Trading happens around the clock instead of during market hours.
Gold Outperforms Bitcoin in 2025 Price Rally
Physical gold gained 47% from January through September 2025. Bitcoin returned 22% over the same period. The precious metal outpaced the leading cryptocurrency by more than double.
Multiple economic factors supported gold prices. Federal Reserve interest rate cut expectations increased throughout the year. Inflation remained above target levels in major economies.
Potential US government shutdown concerns emerged in September. These fears added to economic uncertainty. Investors typically buy gold during periods of political instability.
The US dollar weakened against major currencies. Gold prices usually rise when the dollar falls. This inverse relationship strengthened during the September rally.
Growing Market for Digital Gold Products
Tokenized gold represents a small but expanding sector. The $2.88 billion market cap is tiny compared to Bitcoin’s market size. However, growth rates show increasing investor adoption.
Tether and Paxos issue the dominant tokens. Both companies are known for their stablecoin products. XAUT and PAXG maintain one-to-one backing with physical gold reserves.
Regular audits verify the gold holdings. Independent firms inspect vault contents. Attestation reports publish monthly for transparency.
The tokens trade on multiple cryptocurrency exchanges. Liquidity improved throughout 2025 as volumes increased. Bid-ask spreads tightened with higher trading activity.
Blockchain settlement provides instant finality. Traditional gold trades take two business days to settle. Token transfers complete within minutes on-chain.
DeFiLlama data confirms the September volume records. CoinGecko tracks overall market capitalization metrics. Both platforms show consistent growth throughout 2025.
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