Trading activity in tokenized gold products surged over the past year, outpacing most traditional gold exchange traded funds as investors sought exposure to the metal amid heightened global uncertainty. Gold backed crypto tokens recorded an estimated $178 billion in trading volume during 2025, according to industry data, with a significant portion of that activity concentrated in the final quarter of the year. The increase coincided with a sharp rally in gold prices, which climbed roughly 70 percent over twelve months to trade near the $4,750 level. Rising geopolitical tensions, renewed tariff risks and volatility across equity and bond markets have reinforced demand for defensive assets. Within this environment, tokenized gold has emerged as a preferred vehicle for some investors due to its accessibility, continuous trading and ability to settle on blockchain networks without relying on traditional market hours or intermediaries.
Products such as Tether Gold and Paxos Gold accounted for the bulk of the activity, benefiting from deeper liquidity and broader exchange support. Combined, the market capitalization of gold backed tokens expanded by more than 170 percent last year to exceed $4.4 billion, a small figure relative to the estimated $32 trillion global gold market but one that reflects accelerating adoption. Trading volumes for tokenized gold surpassed those of all but one major US listed gold fund, trailing only SPDR Gold Shares in overall scale. Market participants note that the growth has been driven by both institutional desks and crypto native traders seeking a hedge that can be moved quickly across venues during periods of market stress.
The momentum has also renewed debate about how tokenized commodities fit into the broader financial system as prices continue to rise. Some industry executives have suggested that gold could test the $5,000 level if macroeconomic pressures persist and safe haven demand remains elevated. Tokenized formats offer exposure without the logistical constraints of physical bullion while avoiding some of the friction associated with traditional funds. At the same time, their growth underscores a wider trend of real world assets moving onto blockchain rails, where they can be traded, settled and used as collateral with greater flexibility. While still niche in absolute terms, the surge in tokenized gold activity signals increasing investor comfort with blockchain based representations of established assets.
