Amid volatile markets and growing demand for safe-haven assets, gold is once again rising as a preferred investment. But in 2025, it’s not just traditional yellow gold — tokenized versions like Paxos Gold (PAXG) and Tether Gold (XAUT) are experiencing significant growth.
PAXG and XAUT Up Over 23% in 2025
The two most popular gold-backed tokens — PAXG and XAUT, both fully backed by physical gold — have risen more than 23% since the beginning of the year. In early 2025, both reached new all-time highs above $3,300 before slightly stabilizing below that threshold.
In comparison:
- Bitcoin has dropped over 11% during the same period.
- The entire crypto market is down more than 30%, according to the CoinDesk 20 Index.
Trump’s tariffs sank crypto, but gold remained stable
Political uncertainty and the trade war initiated by Trump led to a crash in the crypto market. Nevertheless, gold ETFs remained resilient, proving that gold is a valuable and stable asset in uncertain times.
Why Is Tokenized Gold Gaining Popularity?
Tokens like PAXG and XAUT combine two key advantages:
- Backing by real gold stored in physical vaults.
- Tradability and transfer via blockchain, making them more liquid than traditional gold.
This makes them offer:
- Flexibility like a cryptocurrency
- Security like classic gold
Institutional Investors Are Turning to Gold
It’s not just the crypto community turning to gold. Traditional investors are also pouring money into gold ETFs:
- 226.5 tons of new investments in gold ETFs in Q1 2025 — the highest level in the past three years.
- North America leads the way, accounting for nearly 60% of demand.
New Gold Token Issuance Strengthens the Trend
According to data from RWA.xyz, over $42.7 million worth of new PAXG and XAUT tokens were issued in Q1 2025. This has pushed the total market cap of tokenized gold close to $1.4 billion.
This clearly shows: in times of pressure on both crypto and traditional markets, investors are turning to tokenized gold for stability with digital flexibility.
In 2025, tokenized gold is becoming the preferred choice for investors seeking a balance between security and digital mobility. While the crypto market contracts, PAXG and XAUT are gaining trust thanks to real value and easy accessibility.
This article is for general informational purposes only and is not intended to be, nor should it be considered, legal or investment advice.
