Due to fear of tariffs, tokenized gold approaches a market capitalization of $20 billion.

Tokenized gold once again appeared as an outperformer of the massacre as risk assets, including cryptocurrency, struggled on Thursday amid uncertainty in tariffs.

According to Coingecko data, the market capitalization of gold-backed tokens rose just under $500 million on Wednesday, up 5.7% over the past 24 hours. The rise coincided with the yellow metal's temporary contact with fresh, fresh, over $3,170/ounce, TradingView shows.

In addition to price lurries, Gold Tokens have experienced an insanity of activity and demand over the past few weeks, driven by wider market disruptions. A report from digital asset platform CEX.IO shows that weekly tokenized gold trading volume exceeded $1 billion, the highest since the US bank turmoil in March 2023.

The two biggest tokens, Paxos Gold (Paxg) and Tether Gold (Xaut), have skyrocketed weekly trading volumes, at over 900% and 300%, respectively, since January 20th. PAXG also experienced a continuous inflow of $63 million in total during this period, Defillama data shows.

The rally will track the broader benefits of physical gold, which recorded double-digit increases in 2025 amid geopolitical uncertainty and inflation concerns. However, even gold had not spared during the entire market sale caused by US tariffs, so prices fell 6% in a short time before quickly recovering to highs.

Since Trump's inauguration, tokenized gold has been one of Crypto's top performance sectors, with market capitalization rising 21%, the report said. In contrast, Stablecoins scored a more modest 8% in market capitalization, while Bitcoin fell 19%, losing 26% in total in the Crypto market.

“Tokenized gold, along with Bitcoin, is emerging as one of the key diversification strategies among users from cryptographic origins,” writes Alexandr Kerya, vice president of product management at cex.io. “It provides a safer and more stable approach to portfolio management, allowing users to stay within the crypto ecosystem, benefiting from the value and stability of the underlying physical assets.”

“At the same time, the broader RWA story helps make gold exposure more accessible and intuitive for users who have not previously considered it,” Kerya added.

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