Tokenized gold trading has seen a surge in activity, surpassing $1 billion in weekly volume for the first time in two years. This increase comes as investors seek safe-haven assets amidst escalating global tensions following U.S. President Donald Trump’s reintroduction of import tariffs.
The resurgence in interest in tokenized gold began in early February 2025, as fears of a renewed global trade war started impacting digital asset markets. Trump’s tariffs, announced on January 20, have had a significant impact on the tokenized gold sector. Trading volume for Paxos Gold (PAXG) has increased over 900%, Tether Gold (XAUT) is up more than 300%, and Kinesis Gold (KAU) has seen an astonishing 83,000% spike in activity. Collectively, tokenized gold projects have experienced a 21% increase in market capitalization and a 1,000% jump in volume since Trump’s return to office.
These digital gold assets are part of the broader trend of real-world asset (RWA) tokenization, where financial instruments and physical goods like real estate and art are minted on blockchain networks. As investors continue to seek diversification amid macroeconomic instability, RWAs like tokenized gold are gaining traction.
The surge in tokenized gold trading coincides with a record rally in physical gold prices, reaching an all-time high of $3,118 per ounce in late March. Gold is up over 18% year-to-date, while Bitcoin has declined more than 12%. Alexandr Kerya, VP of Product Management at CEX.IO, notes that tokenized gold is becoming a key diversification strategy for crypto-native users, offering a safer and more stable approach to portfolio management within the crypto ecosystem.
Trump’s trade policies have reignited investor appetite for stable and tokenized assets, reminiscent of the flight to safety seen during the 2023 banking crisis. Tether, the issuer of the world’s most traded stablecoin, is reportedly considering launching a U.S.-only version of its token if favorable regulations are introduced to support domestic stablecoin development. Paolo Ardoino, CEO of Tether, has confirmed discussions with U.S. regulators regarding the framework for stablecoins.
Overall, the surge in tokenized gold trading highlights the growing interest in digital assets backed by physical commodities like gold. As geopolitical tensions continue to impact financial markets, investors are turning to tokenized assets as a means of diversification and stability.