The value of gold-backed cryptocurrencies has surged as global trade tensions intensify following the April 2 tariffs imposed by US President Donald Trump.
Tether Gold (XAUT) and Paxos Gold (PAXG) both set new records on April 22, with XAUT reaching $3,529 and PAXG peaking at $3,520, according to CoinMarketCap. Meanwhile, two other gold-backed assets, Quorium (QGOLD) and Kinesis Gold (KAU), recorded gains of 8.5% and 7.6% over the past month. Data from CoinGecko reveals that all four tokens have risen by at least 40% over the past year.
Tether attributes the rising demand for XAUT to broader macroeconomic pressures, including heightened economic uncertainty, geopolitical tensions, and an increasing search for assets resistant to inflation.
Since Trump’s new wave of tariffs, gold prices have climbed sharply. On April 2 — now dubbed “Liberation Day” — gold was priced at $3,115 per ounce. By April 28, it had risen to $3,335, a 7% increase within just under a month.
Gold traditionally acts as a safe-haven asset in uncertain times, drawing investors looking for security. Similarly, Bitcoin BTC $94,421 — often called “digital gold” — has risen by 14% over the same period.
Expanding RWA Market
The market for tokenized real-world assets (RWAs) — which include commodities like gold, bonds, and real estate — continues to expand. According to RWA.xyz, the market cap for tokenized RWAs (excluding stablecoins) now stands at $21.6 billion, marking an 8.6% rise over the last month.
Tether Gold and Paxos Gold are prime examples of how real-world asset tokenization works. Each token is reportedly backed by one troy ounce of physical gold, with Tether storing its reserves in Switzerland and Paxos in London. In 2025, tokenized gold has emerged as a standout crypto use case, reaching its highest trading volume in two years on April 10.
Tokenizing gold offers unique advantages over traditional gold investment methods. Settlements are instant, trading can happen quickly, and in some cases, tokenized gold can even be spent on goods and services, unlike traditional gold-backed investments that typically convert only into fiat currencies.
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