Tokenized Gold Market Reaches New Highs in 2025
- Tether’s XAUt and Paxos’ PAXG see notable issuance.
- $2.57 billion market cap milestone in tokenized gold reached.
- Ethereum network liquidity and fees notably affected.
In 2025, key players like Tether and Paxos expand their gold-backed tokens via regulated platforms, highlighting rising global interest in tokenized assets for stability amid economic fluctuations.
These tokenized assets, linked to physical gold, offer investors a secure refuge, influencing cryptocurrency markets and driving demand for both Ethereum-based tokens and physical gold integration.
Tether, Paxos, and Meld Gold drive tokenized gold to new heights in August 2025.
The increase in tokenized gold market cap highlights rising institutional demand and impacts Ethereum.
Tether and Paxos Lead $2.57 Billion Surge
Tether, Paxos, and Meld Gold are leading the surge in tokenized gold assets. With Tether Gold’s recent record supply and Paxos’s significant inflows, the market is seeing remarkable growth.
These companies are minting new supplies backed by physical gold, aiming to offer safe-haven assets. Paolo Ardoino, CEO, Tether, “Tether Gold ($XAUt) issuance is now at an all-time high as investors seek blockchain-based safe havens that are backed by real assets. Every token is backed 1:1 by LBMA gold, auditable by all.” source. Regulatory compliance and transparency are highlighted by Charles Cascarilla, CEO, Paxos, as key factors.
Ethereum Network Faces Rising Demand and Fees
The surge in tokenized gold issuance has increased demand for safe-haven assets among investors. This has affected the Ethereum network, causing increased fees and liquidity flows.
Financial markets observe a positive shift as institutional capital flows into regulated platforms, boosting confidence. Retail investors also find it easier to participate through accessible platforms.
Tokenized Gold Mirrors 2023 Banking Crisis Trends
The resurgence in tokenized gold parallels past macroeconomic stress periods, like the March 2023 US banking crisis. Previous demand spikes align with gold prices nearing record levels.
Experts suggest the growth trend in tokenized gold will continue, driven by regulatory clarity and market needs. The 2025 developments, as noted by the FCA and ESMA report, offer a strong prospect for future stability.
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