Gold-Backed Cryptocurrencies Surge Amidst Global Market Volatility
Recent global economic uncertainty has driven a surge in the value of gold-backed cryptocurrencies. This surge follows increased market volatility and concerns about inflation.
Specifically, Tether Gold (XAUT) and Paxos Gold (PAXG) reached record highs on April 22nd, with XAUT peaking at $3,529 and PAXG hitting $3,520, according to CoinMarketCap data. Other gold-backed cryptocurrencies, such as Quorium (QGOLD) and Kinesis Gold (KAU), also experienced significant gains, registering increases of 8.5% and 7.6% respectively over the past 30 days. All four tokens have seen impressive growth of 40% or more in the last year.
Related: Tether’s Record Profits and Bond Holdings
This increased demand for gold-backed tokens, as reported by Tether, is attributed to various macroeconomic factors including geopolitical tensions and the search for inflation-hedging assets. This mirrors the rise in traditional gold prices, which have seen a 7% increase since the announcement of new tariffs on April 2nd.
On April 2nd, the price of gold was $3,115 per ounce, rising to $3,335 per ounce by April 28th. This rise reflects the increased investor interest in gold as a safe haven asset during periods of economic uncertainty.
Bitcoin (BTC), often compared to “digital gold,” also saw a 14% increase during the same period. This surge highlights the overall trend towards assets perceived as inflation hedges.
The Expanding RWA Market
The tokenization of real-world assets (RWAs), including precious metals, bonds, and real estate, is a rapidly expanding market. RWA.xyz reports a market capitalization (excluding stablecoins) of $21.6 billion, an 8.6% increase over the last 30 days. Tether Gold and Paxos Gold are prime examples of this trend, each token reportedly backed by one troy ounce of physical gold.
Tokenized gold offers several advantages over traditional gold investments, including instant settlements and, in some cases, the ability to use the tokens for purchases. These features contribute to the rising popularity of tokenized gold in 2025, exemplified by the trading volume reaching a two-year high on April 10th.
Related: Tether Launches Gold-Backed Stablecoin