By Key Points
- Tokenized gold market cap crosses $1.2B amid gold price boom
- Blockchain firms lead tokenization of physical gold reserves
- US and BRICS nations eye gold-backed digital currencies
- Investors weigh gold vs Bitcoin in modern safe-haven debate
As gold prices soar past the $3,000 per ounce mark, the market cap of tokenized gold has now crossed $1.2 billion. This surge is not just about the metal—it’s a clear signal that blockchain technology is beginning to reshape one of the world’s oldest asset classes.
Leading the charge are blockchain-based gold tokens like Tether Gold (XAUT) and Paxos Gold (PAXG). Together, they make up nearly the entire tokenized gold market—Paxos holds a 51.74% share, while Tether follows closely at 46.69%. These tokens allow investors to hold fractional ownership of real, physical gold, securely stored in vaults, but accessible via digital wallets.
Gold price performance. Source: TradingView – Techtoken
According to Don Tapscott, co-founder of the Blockchain Research Institute, this innovation could revolutionize the $13 trillion gold market by introducing transparency, liquidity, and real-time verification. He argues that gold, like Bitcoin, deserves a digital evolution—one where ownership is provable, divisible, and global.
“Why are we still storing gold like it’s the 1800s?” Tapscott asks. “Blockchain makes gold traceable, tradable, and usable in a way that physical bars never could.”
Interestingly, some firms are going beyond just storage. Matador Technologies is tokenizing gold on the Bitcoin blockchain—combining physical gold claims with limited-edition digital art. This hybrid approach attracts both traditional investors and NFT enthusiasts.
This surge of innovation mirrors other shifts in the digital asset space, like MicroStrategy’s continued Bitcoin acquisitions and how crypto whales reacted to Bitcoin’s Q1 crash with bullish activity, signaling growing confidence in blockchain-based alternatives.
Tokenized gold holdings. Source: rwa.xyz – Techtoken
Governments Explore Gold Tokenization as Dollar Faces New Threats
As private companies accelerate gold tokenization, governments are starting to explore similar moves.
Following President Trump’s March 2025 executive order establishing a Strategic Bitcoin Reserve (SBR), there’s growing chatter that the U.S. might tokenize its gold reserves. Treasury Secretary Scott Bessent has hinted at “monetizing assets,” sparking speculation that even Fort Knox gold could be brought on-chain.
Senator Cynthia Lummis has even proposed converting part of the U.S. gold stash into Bitcoin. Notably, U.S. gold is still valued at $42 per ounce on government books—an outdated figure given today’s soaring prices.
While the U.S. debates next steps, China and Russia are moving faster. According to Bitcoin evangelist Max Keiser, BRICS countries are working on a gold-backed stablecoin to compete directly with the U.S. dollar.
Gold has been a store of value for millennia—but why are we still storing it the same way we did in the 1800s? While Bitcoin and stablecoins have gone digital, gold remains locked away in vaults, underutilized and undervalued on the books. That’s changing.
Tokenized gold—backed… pic.twitter.com/biYkZkZdV9
— Don Tapscott (@dtapscott) March 27, 2025
With over 50,000 tonnes of combined gold reserves, China and Russia have the resources and motivation to launch such a stablecoin. Russia’s rejection of Bitcoin for its National Wealth Fund—favoring gold and the Chinese yuan instead—reinforces this shift.
This strategic move also reflects a broader effort to de-dollarize global trade, especially in emerging markets. If successful, a gold-backed stablecoin could challenge the USD’s role as the world’s reserve currency.
The idea fits into a growing movement where governments and private players are exploring blockchain not just for crypto, but for real-world assets like gold, real estate, and even commodities.
US Treasury Secretary Scott Bessent says, “all the #GOLD is there,” as he has no plans to visit Fort Knox or to revalue #GOLD reserves in a sovereign wealth fund. He speaks on “Bloomberg Surveillance.
February 20, 2025 pic.twitter.com/ajysymqpgJ
— Eric Yeung 👍🚀🌕 (@KingKong9888) April 1, 2025
Tokenized Gold and Bitcoin Set to Coexist in a New Financial Era
As tokenized gold gains momentum, investors are comparing it directly to Bitcoin—another alternative to fiat currency during times of economic uncertainty.
Gold remains a reliable hedge during inflation and geopolitical turmoil. This was seen recently as investors moved into gold following President Trump’s 2025 tariff announcements, reigniting trade tensions. Meanwhile, Bitcoin’s volatility remains a concern for some traditional investors, despite its growing adoption.
The BRICS, principally Russia, China & India will counter any attempt by the US, to introduce a hegemonic, USD-backed stablecoin — with a Gold-backed stablecoin.
The majority of the global market will favor a Gold-backed coin since it’s inflation-proof (unlike the USD) and… https://t.co/6s9F3j44xR
— Max Keiser (@maxkeiser) March 23, 2025
However, many analysts believe Bitcoin and tokenized gold will coexist as complementary assets in a modernized financial system. Gold provides stability, while Bitcoin offers growth potential.
This convergence reflects the broader trends of the digital economy, especially as institutions increasingly explore tokenization across assets. The recent Coinbase quarterly losses show that while crypto markets are still maturing, interest in blockchain-powered solutions like tokenized gold continues to rise.
Even security and infrastructure are evolving fast. The UpCX hack reminded investors of the importance of secure protocols—something that tokenized assets with real-world backing aim to solve through trustless verification.
Add in unpredictable crypto stunts—like CZ’s April Fools’ joke that sent shockwaves—and it’s clear why some are turning to gold-backed tokens for more grounded options.
In a financial world increasingly shaped by decentralization, tokenized gold could be the bridge between old-world value and new-world tech—secure, stable, and accessible.
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