Gold-Backed Tokens Break $2.5B as Precious Metal Tests Records

The market for tokenized gold has reached an all-time high, driven by inflows into Tether’s XAUT and Paxos’ PAXG as spot gold trades just shy of its April peak.

CoinGecko data shows the combined market value of tokenized gold at $2.57 billion. XAUT supply rose by $437 million to $1.3 billion after Tether minted 129,000 tokens on Ethereum in August. PAXG also expanded to a record $983 million, lifted by $141.5 million in net inflows since June, according to DefiLlama.

Gold prices hovered around $3,470 on Tuesday, just below April’s $3,490 high, supported by safe-haven demand and a steepening U.S. Treasury yield curve.