Physical Gold Moves Onto Blockchain as Tokenized Precious Metals Hit Record Market Cap
As tokenization technology that places real-world assets on the blockchain rapidly penetrates the commodities market, the market capitalization of tokenized commodities backed by gold and silver has finally surpassed the $6 billion mark.
According to cryptocurrency media outlet Cointelegraph on February 11 (local time), the total market capitalization of tokenized assets backed by precious metals such as gold and silver reached a record high of $6.295 billion. Of this, the tokenized gold market accounts for the majority at $5.814 billion, while the tokenized silver market stands at $481 million.
Based on CoinGecko data, the market has expanded more than fourfold compared to the end of 2024. Paxos Gold (PAXG) by Paxos and Tether Gold (XAUt) by Tether together account for more than half of the total market. Investors are drawn to the ability to trade instantly and verify ownership transparently via blockchain without the inconvenience of physically holding or storing gold.
Growing institutional demand for Real World Assets (RWA), combined with heightened geopolitical tensions driving a preference for safe-haven assets, has accelerated market growth. In particular, during periods of Bitcoin (BTC) price stagnation, tokenized gold—offering both the stability of physical assets and the convenience of digital assets—has emerged as a new hedge against inflation.
Major crypto firms, including Tether, are actively increasing their gold holdings to diversify their asset composition. Tether CEO Paolo Ardoino stated that the company aims to allocate 10% to 15% of its investment portfolio to gold, reinforcing confidence in the long-term growth potential of the tokenized commodities market.
Experts predict that tokenized commodities will move beyond being simple investment products and become core infrastructure supplying liquidity to the global financial system. As younger generations familiar with digital assets increasingly enter the gold investment market, the trend of tokenizing real-world assets is expected to expand further into a wider range of commodities.
*Disclaimer: This article is for investment reference only, and no responsibility is taken for investment losses based on it. The content should be interpreted for informational purposes only.*
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