Bullion Smashes Records, Driving Tokenized Gold Market Toward $3B

Tokenized Gold Market Nears $3B as Bullion Soars to Record Levels – 30/9/2025

Gold’s historic rally continued on Monday, with spot prices surpassing $3,800 per ounce, driving tokenized versions of the metal to new all-time highs.

Tether’s XAUT and Paxos’ PAXG, the largest gold-backed tokens, saw record monthly trading volumes in September as investors flocked to blockchain-based bullion. XAUT traded near $3,838, while PAXG reached $3,850, reflecting rising demand for digital assets tied to physical gold.

According to CoinGecko, the total market capitalization of tokenized gold assets climbed to $2.88 billion, with XAUT contributing around $1.43 billion and PAXG about $1.12 billion. These tokens allow 24/7 trading and near-instant settlement, combining the stability of gold with the flexibility of digital finance.

Trading activity surged alongside price gains. PAXG recorded more than $40 million in net inflows during September, posting a monthly volume exceeding $3.2 billion. XAUT also hit a record $3.25 billion in monthly turnover, per DeFiLlama. Notably, XAUT’s market cap growth came entirely from rising gold prices, with no new tokens minted in September following August’s $437 million issuance.

Macro conditions remain supportive. Investors are anticipating potential Fed rate cuts and a softer U.S. dollar, while a looming government shutdown adds to gold’s appeal as a safe haven. In contrast, Bitcoin, often dubbed “digital gold,” trails with a 22% gain year-to-date.