Tokenized Gold Market Surges Past $2.5B, Led by XAUT & PAXG
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Tokenized Gold Market Reaches Record High
The market capitalization of crypto tokens backed by gold has reached an all-time high, surpassing $2.5 billion. This surge comes as the price of gold flirts with its April peak, indicating strong investor interest in tokenized precious metals.
Key Players: Tether's XAUT and Paxos' PAXG
The growth is primarily driven by two leading tokens:
- Tether's XAUT: XAUT's supply jumped by $437 million to a record $1.3 billion. Tether Treasury minted 129,000 new tokens in early August on the Ethereum network, indicating substantial demand.
- Paxos' PAXG: PAXG, issued by Paxos, reached a record market size of $983 million, fueled by $141.5 million in net inflows since June.
Both XAUT and PAXG are designed to mirror the price of gold, with each token backed by physical gold bars stored in vaults.
Gold's Safe-Haven Appeal
Gold, currently trading around $3,470, is widely regarded as a safe-haven asset during economic uncertainty. The recent surge in its price, coupled with a steepening U.S. Treasury yield curve, has further fueled interest in gold-backed tokens.