Tokenized gold hits $5.1B but represents less than 0.02% of the $30.1T gold market
RWA Signal Insight
CommoditiesThe global tokenized gold market has reached approximately $5.1 billion, representing a significant growth trajectory from under $1.5 billion in late 2024. Despite this expansion, the sector accounts for less than 0.02% of the total $30.1 trillion physical gold market, highlighting substantial room for future adoption. The market is currently dominated by Tether Gold (XAUt) and Pax Gold (PAXG), which together control between 89% and 98% of the total tokenized supply. These assets are backed by physical gold stored in LBMA-certified vaults, allowing investors to gain exposure to spot prices without physical storage requirements. In the first quarter of 2026, tokenized gold recorded $90.7 billion in spot trading volume, indicating high liquidity and active turnover. This utility is further enhanced by integration into decentralized finance (DeFi) protocols, which provides a functional layer unavailable to traditional gold ETFs. As the sector matures, the development of a global regulatory framework remains a critical factor for broader institutional integration.
Key points
- Tokenized gold market cap grew from under $1.5B in 2024 to $5.1B currently.
- Tether Gold and Pax Gold dominate with 89% to 98% of total supply.
- Q1 2026 spot trading volume for tokenized gold reached approximately $90.7 billion.
- Tokenized gold represents 11% of all on-chain real-world assets.
Background
Tokenized gold products are digital assets that represent ownership of physical gold bullion stored in secure, audited vaults. By issuing tokens on a blockchain, issuers allow investors to trade fractionalized gold ownership with the speed and transparency of digital assets. These tokens are typically redeemable for physical metal, bridging the gap between traditional commodity markets and decentralized finance.