Overview

The market for gold-backed crypto tokens has hit an impressive $2.57 billion, significantly bolstered by the performance of Tether’s XAUT and Paxos’ PAXG as the price of gold approaches an April height.

Market Insights

• XAUT experienced a minting surge in August, generating $437 million in new tokens.
• PAXG has seen a solid $141.5 million in inflows since June.

Current Gold Pricing

Gold is currently approaching $3,470, just under its peak from April 22nd, highlighting increased demand for safe-haven assets like gold. This demand has spurred investments into tokenized options that track gold prices and are backed by actual gold reserves stored in vaults.

As this trend continues, the interest in gold-backed tokens as a hedge against economic uncertainty is expected to grow.