Tokenized Gold Controls Weekend Price Discovery, Says Theo CIO
Commodities
Tokenized gold has emerged as a critical venue for price discovery during the 25-hour weekend window when U.S. CME gold futures markets are closed. According to Theo CIO Iggy Ioppe, blockchain-based gold markets now influence price movements that are frequently reflected when traditional futures trading resumes on Sunday evenings. The sector experienced significant growth over the past year, with market capitalization surging 177% from $1.6 billion to $4.4 billion. This expansion saw the addition of over 115,000 new wallets, while trading volume reached approximately $178 billion in 2025. Tokenized gold now ranks as the second-largest gold investment product globally by trading volume, trailing only the SPDR Gold Shares ETF. Despite this momentum, institutional adoption remains cautious, with many desks using on-chain data for informational purposes rather than active trading due to liquidity and regulatory fragmentation. The rise of this asset class highlights a structural shift in how global gold markets operate, positioning tokenized assets as a vital component of the broader RWA ecosystem.
Key points
- ▸Tokenized gold market cap grew 177% to $4.4 billion over the past year.
- ▸2025 trading volume hit $178 billion, ranking second globally behind SPDR Gold Shares.
- ▸Over 115,000 new wallets were added to the tokenized gold ecosystem.
- ▸Tokenized gold accounts for roughly 25% of all net inflows into the RWA sector.
Background
Tokenized gold represents digital tokens on a blockchain that are backed by physical gold reserves held in secure vaults. These tokens allow investors to gain exposure to gold price movements with the added benefits of 24/7 trading, fractional ownership, and on-chain transferability. They function as a bridge between traditional precious metal markets and decentralized finance protocols.
Relevance
8/10