- Tokenized gold market reaches $3.9B, rivaling stablecoins.
- Increased institutional inflows noted.
- Retail and institutional demand growing.
The tokenized gold market has surged to $3.9 billion as of November 2025, rivaling stablecoins in inflows, driven by institutional interest and demand for 24/7 gold exposure.
This growth signifies a shift in investment strategies, with gold-backed tokens becoming a preferred asset class, impacting cryptocurrency dynamics and attracting regulatory attention globally.
As of November 2025, the tokenized gold market has expanded to $3.9 billion. This reflects a significant interest both from retail investors and institutions looking for 24/7 exposure to physical gold without direct custodial risk.
Key players like Tether with XAUT and Paxos with PAXG are leading this growth. Paolo Ardoino of Tether asserts that tokenized gold meets a growing demand for transparency and accessibility in gold investing. Paolo Ardoino, CTO, Tether said, “Tokenized gold is not just a trend. XAUT is backed 1:1 with physical gold, audited monthly, and redeemable. We see strong demand from both retail and institutions seeking 24/7 gold exposure.”
The surge in tokenized gold has impacted markets by redirecting some inflows from traditional stablecoins. Leading cryptocurrencies like Ethereum support these gold-backed tokens, boosting their adoption across various blockchain platforms.
Financial institutions such as Morgan Stanley now offer these products to clients, indicating a major step in institutional adoption. Regulatory bodies are working on measures to ensure investor protection in this expanding market.
PAXG and XAUT liquidity pools have seen substantial growth, highlighting increased trading activity. Stablecoin issuances like USDC facilitate investments into these protocols, further driving interest in tokenized real-world assets. Potential outcomes include more stringent regulation and a shift towards integrating real-world assets on-chain. Historical data reveal significant interest in alternative assets during economic uncertainties, suggesting continued growth in tokenized markets.
