Gold Tokenization Market Surpasses $6 Billion, Tether Captures Half

▲ Gold

Amid global economic uncertainty, surging demand for the digitalization of physical assets has pushed the gold tokenization market past the historic milestone of $6 billion.

According to cryptocurrency media outlet BeInCrypto on February 13 (local time), the total market capitalization of the gold tokenization market—led by Tether Gold (XAUt) and Paxos-issued PAX Gold (PAXG)—has increased by more than $2 billion since the beginning of the year, reaching $6.12 billion. The amount of physical gold held in custody to back these digital tokens has surpassed 1.2 million ounces, underscoring strong investor appetite for accessing safe-haven assets through blockchain infrastructure. Despite sharp fluctuations in gold prices recently, tokenized gold has firmly established itself as one of the fastest-growing sectors in the digital asset market.

Tether Gold, which commands more than 50% market share and leads the sector by a wide margin, currently boasts a market capitalization of $3.5 billion. In just the past month, its market cap has surged by over 50%, a rise attributed to Tether’s aggressive gold accumulation strategy. Tether CEO Paolo Ardoino previously revealed plans to allocate 10% to 15% of the company’s overall investment portfolio to gold, and in the fourth quarter of 2025 alone, the firm purchased an additional 27 tons of gold. This pace exceeds the gold acquisition rates of countries such as Australia and Qatar. Tether also recently invested $150 million in precious metals platform Gold.com, securing a 12% stake.

PAX Gold, the industry’s second-largest player, has also seen its market capitalization grow 33.2% over the past month to reach $2.3 billion. Together, Tether Gold and PAX Gold account for the vast majority of activity in the gold tokenization market, serving as gateways for institutional investors to gain exposure to physical gold without the complex procedures of the traditional financial system. “Our goal is to broaden access to gold across both digital and traditional distribution channels,” Ardoino said, adding that the company plans to create an environment where customers can directly purchase physical gold using the stablecoin USDT.

The rapid expansion of the gold tokenization market is particularly noteworthy as it has occurred during a period of heightened volatility in physical gold prices. After reaching an all-time high of $5,602 per ounce on January 29, gold prices plunged to $4,402 on February 2, reflecting a sharp correction. Nevertheless, demand for digital gold has remained resilient despite the price swings, with blockchain-based asset allocation strategies increasingly emerging as alternatives or complements to traditional gold investment methods.

The gold tokenization market is evolving beyond a niche segment of digital assets into a key bridge connecting the physical economy and digital finance. Experts note that major stablecoin issuers like Tether are steadily increasing their gold holdings, enhancing market credibility and potentially catalyzing the inflow of trillions of dollars in traditional capital into tokenized commodity markets. Holding hard assets through digital instruments is now becoming an essential risk management tool for institutional investors rather than a discretionary choice.

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