Gold-backed cryptocurrencies like Tether Gold and Paxos Gold have risen about 7% in the last month as investors seek safe-haven assets.
Gold-backed cryptocurrencies have experienced a significant increase in value amid the global trade war sparked by the tariffs on April 2nd from U.S. President Donald Trump.
Tether Gold (XAUT) and Paxos Gold (PAXG) reached all-time highs on April 22nd, with Tether Gold touching $3,529 and Paxos Gold recording a peak of $3,520, according to data from CoinMarketCap. Two other gold-backed cryptocurrencies, Quorium (QGOLD) and Kinesis Gold (KAU), have seen increases of 8.5% and 7.6%, respectively, in the last 30 days. The four tokens have risen 40% or more in the last 12 months, according to data from CoinGecko.
According to a report by Tether, the highest demand for XAUT is due to macroeconomic factors such as increasing global economic uncertainty, geopolitical conflicts, and a growing demand for inflation-resistant assets.
Since President Trump's renewed trade war, gold has significantly increased in value. On April 2nd, Trump's 'Liberation Day,' when tariffs were announced, the price of an ounce of gold was $3,115. As of writing this, on April 28th, the price per ounce is $3,335, representing a 7% increase in less than 30 days.
Gold, often seen as a hedge against inflation, tends to attract investors during times of economic uncertainty. Similarly, Bitcoin (BTC), often referred to as 'digital gold,' has risen 14% during the same period.
Growing RWA market
The tokenization of real-world assets (RWA) products that bring assets like precious metals, bonds, and real estate to the blockchain is a growing market. According to RWA.xyz, the market capitalization of tokenized RWAs (excluding stablecoins) stands at $21.6 billion, an 8.6% increase in the last 30 days.
Tether Gold and Paxos Gold are examples of RWA tokenization. Each coin in both products is reportedly backed by one troy ounce of real gold. Tether is said to store its gold reserves in Switzerland, while Paxos keeps its gold in London. Tokenized gold has been a solid use case in cryptocurrencies in 2025, reaching a two-year trading volume high on April 10th.
The tokenization of gold has some advantages over more common investment instruments that provide exposure to gold. For example, settlements through these funds are instantaneous, allowing for quick trading. Additionally, some tokenized gold tokens can be used to purchase goods and services, while traditional instruments can generally only be redeemed for fiat currency.
