Tokenized gold market, market capitalization surpasses $2.5 billion

As gold prices approached the April peak, the market size of crypto assets (cryptocurrencies) backed by gold reached an all-time high.

On the 2nd (local time), crypto outlet CoinDesk, citing CoinGecko, reported that the tokenized gold market had surpassed $2.50007 billion (about KRW 3.5 trillion). The main products, Tether's 'XAUT' and Paxos's 'PAXG', have recently seen rapid inflows.

XAUT saw 129,000 new tokens issued on the Ethereum network in August, causing its market capitalization to surge to $1.3 billion. PAXG also expanded to $980 million in size due to net inflows of over $140 million since June.

The spot price of gold traded at about $3,470 per ounce that day, approaching the all-time high recorded on April 22. Analysts say that preference for safe-haven assets amid uncertainty and the steepening of the US Treasury yield curve are stimulating gold demand.