Tokenized gold recorded exceptional growth throughout 2025. According to the latest industry reports, the market capitalization of tokenized gold soared by 177% compared to the previous year, driving overall growth in the real-world assets (RWA) sector. This growth reflects increasing investor interest in digital assets backed by tangible, real-world commodities.
Significant Growth in Market Capitalization
The market capitalization of tokenized gold increased from approximately $1.6 billion to $4.4 billion during 2025, adding nearly $2.8 billion in new value to the RWA category. This contribution accounts for around 25% of the total net growth of the entire RWA sector, surpassing expansion recorded by other tokenized assets such as tokenized equities, corporate bonds, and non-U.S. government debt.
This surge occurred alongside a strong year for physical gold, which rose more than 67% in market value. However, tokenized gold grew at more than 2.5 times the pace of physical gold, highlighting a shift in liquidity preferences and investment exposure toward on-chain assets rather than traditional instruments.
Trading Volume Surpasses Gold ETFs
Beyond market capitalization growth, tokenized gold recorded annual trading volume of approximately $178 billion in 2025. This figure exceeded the activity of several major gold ETFs, with fourth-quarter volume alone surpassing $126 billion. By comparison, products such as SPDR Gold Shares remain the largest in terms of global trading volume, but tokenized gold emerged as the second-largest player based on trading activity.
Tether Gold (XAUt) was the primary contributor to this surge in volume. In the fourth quarter, XAUt accounted for around 75% of total tokenized gold trading volume, up sharply from 27% in the previous quarter. XAUt itself is backed by thousands of physical gold bars, strengthening investor confidence in the token.
What Is Tokenized Gold and What Are Its Advantages?
Tokenized gold is a digital representation of physical gold backed by real gold reserves held by custodians. These assets are recorded on the blockchain, enabling fractional ownership, 24/7 trading, and transparent on-chain reserve verification.
Unlike gold ETFs, which can only be traded during market hours, tokenized gold can be accessed globally without time restrictions. Investors can also purchase gold in small fractions without the need to store physical gold.
One of the most popular examples of tokenized gold is Tether Gold (XAUt). Each 1 XAUt represents one troy ounce of physical gold stored in professional vaults. Thanks to its high liquidity and flexibility, XAUt became a major contributor to tokenized gold trading volume throughout 2025.
Impact on the RWA Ecosystem
The rapid growth of tokenized gold has also had a positive impact on broader real-world asset adoption. The RWA sector includes all asset classes tokenized in crypto form, such as real estate, bonds, and other commodities. The success of tokenized gold serves as proof that real-world asset tokenization is not just theoretical, but a practical, scalable, and attractive investment tool.
With substantial trading volume and the ability to attract both retail and institutional investors, tokenized gold has positioned itself as one of the core pillars in the growth narrative of real-world–backed crypto assets in 2025.
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