Commodity-backed cryptocurrencies, particularly those tied to gold, are experiencing an unprecedented increase in their issuance this week. With minting volumes reaching a record $439 million, this surge is the highest in the past five years.

This development follows a dramatic rise in gold futures, which recently exceeded $3,500 amid concerns regarding the potential effects of U.S. tariffs on Switzerland’s gold exports. These tariffs were warned could negatively impact the flow of physical gold internationally. Concerns escalated when reports indicated that U.S. tariffs, set at 39%, might affect the gold imports from Switzerland. Despite this, gold-backed cryptocurrencies like Tether Gold and Paxos Gold saw their values briefly surpass $3,390 before retreating.

Gold-backed cryptocurrencies are becoming more popular due to their appeal as a safe haven, especially during turbulent times like these. This has allowed investors easy access to gold’s value while benefiting from the blockchain’s advantages for international trade. Switzerland plays a significant role in the gold market, refining a large portion of the world’s gold supply despite having no mines itself. In the previous year, it exported over $61 billion in gold to the U.S. However, there is growing political pressure in the country to ensure the gold sector contributes to offsetting the economic consequences linked to these tariffs.