The tokenized gold market is taking off: heading towards $4 billion in capitalization

The tokenized gold is experiencing an exceptional trajectory. The total market capitalization of gold-backed stablecoins has reached a new impressive milestone: it has tripled in less than a year, from $1.3 billion at the beginning of the year to over $4 billion today. This spectacular growth reflects a rising investor interest in digital assets backed by physical reserves.

Tether Gold and Paxos Gold Shape the Sector

The market landscape remains heavily concentrated around two major players. Tether Gold (XAUT) maintains its position as the undisputed leader with a capitalization of $2.39 billion, accounting for nearly 50% of the total market. Paxos Gold (PAXG) ranks second with a capitalization of $1.76 billion. These two industry giants capture about 90% of the total liquidity of tokenized gold, establishing a true market dominance.

Fundamentals Support Growth

Several factors explain this enthusiasm for digital gold. The macroeconomic context plays a significant role: physical gold prices have increased by approximately 66% over the year, fueling demand for practical and liquid investment vehicles. Tether, a key player in the sector, has strengthened its credibility by increasing its physical gold reserves, now holding about 116 tons as of the end of September.

This dynamic suggests a maturation of the gold-backed stablecoin segment, transforming these instruments into essential vehicles for investors seeking secure exposure to precious metals in the digital age.