Tokenized Gold Market Cap Peaks at $1.4B as March Sees Unprecedented Trading Growth

Tokenized Gold Market Hits Record $1.4B as Investors Flock to Digital Assets

The market capitalization of tokenized gold reached a new peak of $1.4 billion in March, fueled by surging demand and record-breaking gold prices above $3,000 per ounce, according to CoinDesk Data’s latest stablecoin report.

Leading the charge in tokenized gold are Tether’s XAUT and Paxos’ PAXG, with market caps of $749 million and $653 million, respectively. Trading activity also skyrocketed, with gold-backed tokens generating over $1.6 billion in volume—the highest in over a year.

Meanwhile, the broader stablecoin market continued its upward trajectory, marking its 18th consecutive month of growth and surpassing a total market cap of $231 billion.

Tether’s USDT supply hit a new record of $144 billion, but its dominance fell to 62.1%, the lowest since March 2023, as competition in the stablecoin space intensified. Circle’s USDC expanded by 7%, bringing its market cap close to $60 billion.

A new player, Ethena’s USDtb stablecoin—backed by BlackRock’s tokenized money market fund BUIDL—made waves in the sector, rapidly accumulating over $1 billion in assets and securing the eighth-largest position by market cap.

On centralized exchanges, USDT remained the dominant trading stablecoin, holding a 75.7% share among the top 10, though slightly lower than in previous months. USDC and First Digital’s FDUSD saw increased market share, rising to 13.6% and 10%, respectively.

In Europe, regulatory developments surrounding the Markets in Crypto-Assets (MiCA) framework led major exchanges like Kraken, Coinbase, and Crypto.com to remove non-compliant stablecoins for EU users.

Circle’s EURC stablecoin emerged as a clear winner amid the regulatory shifts, climbing nearly 30% in market cap to $157 million and securing a 45% dominance in the euro-denominated stablecoin sector.

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