Tokenized Gold Market Hits New Heights as Spot Prices Top $3,800 – 30/9/2025
Gold’s record-breaking rally continued on Monday, with spot prices soaring past $3,800 per ounce, fueling fresh gains for tokenized gold on the blockchain.
Tether’s XAUT and Paxos’ PAXG, the sector’s two largest gold-backed tokens, posted record monthly trading volumes in September. XAUT reached $3,838, while PAXG climbed to $3,850, reflecting strong investor demand for digital assets backed by physical bullion.
Data from CoinGecko shows the combined market capitalization of tokenized gold approaching $2.88 billion, with XAUT at roughly $1.43 billion and PAXG at $1.12 billion. These tokens offer 24/7 trading and near-instant settlement, bridging the stability of physical gold with the flexibility of blockchain finance.
Liquidity surged alongside the price action. PAXG recorded over $40 million in net inflows in September, with monthly trading volume topping $3.2 billion. XAUT posted a record $3.25 billion in volume, driven solely by gold’s price appreciation rather than new token issuance, after August’s $437 million minting.
Macro factors continue to favor gold. Anticipation of Federal Reserve rate cuts, a weaker U.S. dollar, and concerns about a possible government shutdown are supporting demand for the metal. Meanwhile, Bitcoin, often called “digital gold,” lags behind with a year-to-date return of 22%.
