Tokenized Gold Market Reaches $4.8 Billion, Dominated by Tether Gold and Paxos Gold

The tokenized gold market has grown to between $4.4 billion and $4.8 billion, with Tether Gold (XAUt) and Paxos Gold (PAXG) accounting for the majority of the market. Over the past 30 days, the market capitalization of tokenized gold assets increased by $362 million, with Tether Gold representing $237 million of that. According to CoinGecko on the 17th, the market capitalization of the tokenized gold category is $4.82 billion, with Tether Gold at $2.493 billion and Paxos Gold at $1.799 billion. CoinMarketCap presents the market capitalization of the same category as $4.41 billion, with Tether Gold at $2.51 billion and Paxos Gold at $1.81 billion. Tether Gold represents one troy ounce of pure gold from London Bullion Market Association (LBMA) standard gold bars and is stored in Swiss vaults. Tether has been expanding its regulatory engagement with gold-linked tokens this year, having been recognized as an 'Accepted Spot Commodity' at the Abu Dhabi Global Market on July 20. Recently, it has also been observed that Tether Gold and Paxos Gold are being used as collateral on Aave. However, Tether Gold carries risks associated with off-chain vault storage, and it is essential to verify the issuer and custody structure, as well as audit materials. Tether Gold and Paxos Gold dominate the market, with Tether expanding the circulation of gold-linked tokens through regulatory recognition and certification.

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