Growing RWA Market
The tokenization of real-world assets (RWAs) — products that bring assets such as precious metals, securities, and real estate to the blockchain — is an expanding market. According to RWA.xyz, the market capitalization of tokenized RWAs (excluding stablecoins) is $21.6 billion, up 8.6% in the last 30 days.
Tether Gold and Paxos Gold are examples of RWA tokenization. Each coin in both products is supposedly backed by a troy ounce of physical gold.
Tether claims to store its gold reserves in Switzerland, while Paxos keeps the gold in London. The tokenization of gold has been a strong use case in the crypto sector in 2025, reaching a two-year peak in trading volume on April 10.
The tokenization of gold offers some advantages over traditional investment instruments that provide exposure to the metal. For example, settlements through these funds are instant, allowing for quick trades.
Additionally, some tokenized gold tokens can be used for the purchase of goods and services, while traditional instruments usually only allow redemption for fiat currency.
Source: Cointelegraph