Gold-backed crypto is suddenly having its moment. Tokenized gold trading just topped $1 billion for the first time since the 2023 U.S. banking crisis. This time, it wasn’t collapsing banks that triggered the rush to safety. It was trade war fears — and with physical gold prices surging nearly 8% in the past 24 hours, that tariff panic looks very real.
Tariffs Send Investors Scrambling for Shelter
Trading volumes for tokenized gold like Paxos Gold (PAXG-USD), Tether Gold (XAUT), and Kinesis Gold (KAU) have surged since Trump’s Jan. 20 tariff threats. PAXG is up over 900% in volume. XAUT has more than tripled. KAU’s volume soared by a staggering 83,000%.
CEX.io told Cointelegraph that volumes hit levels not seen since the March 2023 meltdown of Silicon Valley Bank. But this time it’s not a bank run — it’s a geopolitical standoff. “Tokenized gold presents a compelling alternative for crypto-native investors who might otherwise look to Bitcoin or stablecoins,” said Illia Otychenko, lead analyst at CEX.io.
Gold Prices Hit Record Highs
Tokenized assets are tracking their physical counterpart. Gold (CM:XAUUSD) has shot up over 19% year-to-date and is trading above $3,131 an ounce. it’s up almost 8% just today. That’s not just inflation hedging — it’s investors running to what they see as digital gold 2.0. On April 7, when the rest of the crypto market tanked, XAUT barely flinched. It dropped just 0.1%.
Tokenized Gold Becomes RWA Market Darling
This surge isn’t happening in a vacuum. Real-world asset (RWA) tokenization is one of the fastest-growing corners of crypto. Think gold, real estate, and treasuries brought on-chain. According to IntoTheBlock, RWAs and stablecoins are pulling in steady inflows as traders try to dodge volatility.
HTX, which offers 24/7 trading of tokenized assets, said XAUT’s resilience has caught the attention of sovereign wealth funds and institutional allocators. The token’s 1:1 peg to LBMA-accredited physical gold and full reserve backing make it a favorite for those seeking stability without ditching crypto altogether.
Institutional Demand Sends a Signal
Central banks have bought over 1,000 tons of gold for three straight years. And now, investors are using tokens like XAUT to do the same. The writing’s on the wall: as tariffs and rate uncertainty stir the pot, gold is back in vogue — and this time, it’s got a blockchain twist.