Latest news with #PaxosGold
Arabian Post
28-04-2025
- Business
- Arabian Post
Tether's Gold Token Surpasses $770 Million Backed by Physical Reserves
Tether's tokenised gold product, XAU₮, has reached a major milestone with over 7.7 tonnes of physical gold now backing the asset, pushing its market capitalisation to $770 million as of 28 April 2025. This development marks a significant expansion of Tether's portfolio beyond its flagship stablecoin USDT and highlights growing investor interest in digital assets secured by tangible commodities. XAU₮, which represents ownership of one troy ounce of gold held in Swiss vaults, has seen steady accumulation over the past year amid fluctuating economic conditions and shifting investor sentiment towards inflation-resistant assets. According to market data, the token's supply growth has mirrored increasing demand for alternative stores of value as concerns around fiat currency stability and geopolitical tensions continue to drive diversification strategies. Tether's disclosure that XAU₮ is now underpinned by more than 7.7 metric tonnes of physical gold signals strengthened efforts by the company to reinforce confidence in its tokenisation products. Analysts observing this trend note that digital gold products have carved a distinct niche, combining the traditional appeal of precious metals with the technological advantages of blockchain systems, including faster settlement times and greater accessibility for a global investor base. Paolo Ardoino, CEO of Tether, stated that the surge in XAU₮'s backing reflects broader demand for hybrid assets that bridge the gap between conventional wealth preservation tools and new digital financial infrastructure. He added that Tether remains committed to transparency and robust management practices as it expands its product suite. Since its launch, XAU₮ has distinguished itself by providing a clear legal structure for ownership claims over specific gold bars, with serial numbers and weight details disclosed through regular attestations. This level of verification has been crucial in appealing to institutional participants who require clear regulatory and custodial assurances before engaging with tokenised assets. See also UAE Emerges as Global Leader in Cryptocurrency Adoption The achievement of a $770 million market cap also places XAU₮ among the most substantial gold-backed cryptocurrencies in circulation, competing with platforms like Paxos Gold and Perth Mint Gold Token . However, Tether's strong brand presence and expansive network have given XAU₮ a competitive edge in terms of liquidity and market penetration. Gold itself has continued to perform as a relatively stable asset amid volatile equity markets, stubborn inflation in key economies, and unpredictable monetary policy shifts. As of late April, gold prices hovered around $2,350 per ounce, with analysts forecasting further strength if macroeconomic uncertainty persists. This backdrop has reinforced the appeal of tokenised gold products like XAU₮, especially for investors looking for easily tradable options without the logistical challenges of physical storage. XAU₮ has also benefited from integration with major exchanges and decentralised finance platforms, allowing users to utilise tokenised gold in broader financial applications such as lending, borrowing, and yield farming. This flexibility contrasts with traditional gold investment avenues, which typically lack interoperability with modern financial tools. Institutional interest has played a critical role in the token's growth trajectory. Asset managers, family offices, and corporate treasuries have increasingly explored tokenised commodities as a way to diversify their holdings while maintaining exposure to traditional safe havens. The ability to transfer ownership efficiently and transparently across jurisdictions has further bolstered the attractiveness of XAU₮. Tether has continually faced scrutiny over its reserve management practices, particularly regarding USDT. However, the company's detailed disclosures regarding XAU₮'s physical gold reserves appear to have mitigated similar concerns for this product. Regular attestations by third-party auditors have provided additional layers of reassurance to stakeholders wary of opaque reserve practices. See also Tether Strengthens Stablecoin Reach with Strategic Stake in Fizen The evolving regulatory environment for stablecoins and tokenised assets may also influence the trajectory of products like XAU₮. Jurisdictions such as the European Union, the United Arab Emirates, and Singapore have introduced or are in the process of finalising frameworks aimed at ensuring greater oversight and consumer protection within the digital asset space. These regulations are expected to encourage higher standards of reporting and reserve management among issuers, benefiting products that already maintain rigorous transparency protocols. Market participants have observed that gold tokenisation is emerging as a sector with strong fundamentals, particularly as broader adoption of blockchain technology reshapes traditional financial services. XAU₮'s growth demonstrates that tokenisation is not limited to speculative assets but can extend to historically conservative sectors such as commodities. While challenges remain — including regulatory uncertainty, technological security risks, and the need for robust custodial solutions — the success of Tether's XAU₮ underscores a maturing digital asset market increasingly focused on quality, transparency, and tangible backing. Observers suggest that continued institutional adoption and technological advancements could position tokenised gold as a staple component of diversified digital portfolios. Arabian Post – Crypto News Network
Yahoo
12-04-2025
- Business
- Yahoo
Tokenized Gold Surges Above $2B Market Cap as Tariff Fears Spark Safe Haven Trade
As gold prices blazed to new records, their digital counterparts are also on a tear, growing faster than most other crypto sectors. As risk assets including cryptocurrencies struggled on Thursday amid tariff uncertainties, tokenized gold once again emerged as an outperformer in the carnage. The market capitalization of gold-backed tokens swelled above $2 billion to a new record on Friday, up 5.5% over the past 24 hours, according to CoinGecko data. The rise coincided with the yellow metal rallying to a fresh all-time high of $3,240/oz, TradingView shows. Alongside the price rally, gold tokens experienced a frenzy of activity and demand over the past weeks, fueled by the broader market turmoil. Weekly tokenized gold trading volume surpassed $1 billion, the highest since the U.S. banking turmoil of March 2023, according to a report by digital asset platform The two largest tokens, Paxos Gold (PAXG), Tether Gold (XAUT), making up the bulk of the tokenized gold market, saw their weekly trading volumes surging over 900% and 300%, respectively, since January 20, according to the report citing CoinGecko data. PAXG also experienced continuous inflows totalling $63 million during this period, DefiLlama data shows. The rally tracks the broader gains in physical gold, which posted double-digit increases in 2025 amid geopolitical uncertainty and inflation concerns. However, even gold wasn't spared during the market-wide sell-off triggered by U.S. tariffs, with prices briefly dropping 6% before quickly recovering to record highs. Since Trump's inauguration, tokenized gold has been one of crypto's top performing sectors, with its market cap up 21%, the report noted. By contrast, stablecoins gained a more modest 8% in market cap, while bitcoin declined 19% and the total crypto market lost 26%. 'Tokenized gold is emerging as one of the key diversification strategies among crypto-native users, alongside bitcoin," wrote Alexandr Kerya, VP of product management at "It provides a safer and more stable approach to portfolio management, enabling users to stay within the crypto ecosystem while benefiting from the value and stability of the underlying physical asset.' "At the same time, the broader RWA narrative helps make gold exposure more accessible and intuitive for users who may not have considered it before," Kerya added. UPDATE (April 11, 15:54 UTC): Updated gold price and tokenized gold market capitalization. Updates 1st graf. Disclaimer: This article, or parts of it, was generated with assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.
Yahoo
12-04-2025
- Business
- Yahoo
Tokenized Gold Nears $2B Market Cap as Tariff Fears Spark Safe Haven Trade
As risk assets including cryptocurrencies struggled on Thursday amid tariff uncertainties, tokenized gold once again emerged as an outperformer in the carnage. The market capitalization of gold-backed tokens swelled to just under $2 billion on Wednesday, up 5.7% over the past 24 hours, according to CoinGecko data. The rise coincided with the yellow metal briefly touching a fresh all-time above $3,170/oz, TradingView shows. Alongside the price rally, gold tokens experienced a frenzy of activity and demand over the past weeks, fueled by the broader market turmoil. Weekly tokenized gold trading volume surpassed $1 billion, the highest since the U.S. banking turmoil of March 2023, according to a report by digital asset platform The two largest tokens, Paxos Gold (PAXG), Tether Gold (XAUT), making up the bulk of the tokenized gold market, saw their weekly trading volumes surging over 900% and 300%, respectively, since January 20, according to the report citing CoinGecko data. PAXG also experienced continuous inflows totalling $63 million during this period, DefiLlama data shows. The rally tracks the broader gains in physical gold, which posted double-digit increases in 2025 amid geopolitical uncertainty and inflation concerns. However, even gold wasn't spared during the market-wide sell-off triggered by U.S. tariffs, with prices briefly dropping 6% before quickly recovering to record highs. Since Trump's inauguration, tokenized gold has been one of crypto's top performing sectors, with its market cap up 21%, the report noted. By contrast, stablecoins gained a more modest 8% in market cap, while bitcoin declined 19% and the total crypto market lost 26%. 'Tokenized gold is emerging as one of the key diversification strategies among crypto-native users, alongside bitcoin," wrote Alexandr Kerya, VP of product management at "It provides a safer and more stable approach to portfolio management, enabling users to stay within the crypto ecosystem while benefiting from the value and stability of the underlying physical asset.' "At the same time, the broader RWA narrative helps make gold exposure more accessible and intuitive for users who may not have considered it before," Kerya added. Disclaimer: This article, or parts of it, was generated with assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.
Yahoo
06-04-2025
- Business
- Yahoo
Gold-backed tokens slide as 'Liberation Day' tariffs put markets in meltdown
Gold-pegged cryptocurrencies Paxos Gold (PAXG) and Tether Gold (XAUT) eased from all-time peaks on Friday after a global financial market rout erased $2.5 trillion from shares in the United States. On April 1, gold hit a historical milestone its all-time high of $3167. Following on the heel of gold's all-time high, both tokens spiked on safe-haven demand initially. PAXG surged to an all-time high of $3,191 while XAUT climbed to $3,190, both above spot gold's high. However, the momentum was weak. PAXG dropped to $3,074 and XAUT to $3,064, mirroring spot gold's decline to $3,038 per ounce. The drop came after President Donald Trump announced reciprocal tariffs that unnerved investors and set off one of the sharpest stock market declines in years. Goldcoin (GLC) — yet another gold-pegged cryptocurrency — also displayed abnormal price volatility. It rose more than 17% in the past 24 hours, trading at $0.01056 at the last check. Its 24-hour trading volume rocketed 2800% higher, but from a low base. Although it is on an upward streak, GLC has one of the highest storage fees in the industry, at 0.6%, which could make it less attractive for long-term holders. Meld Gold (MCAU) maintained a relatively steady price of $57.66, up only 1.39% on the day after months of sideways action. Analysts like Peter Schiff find that while gold acts as a hedge in such uncertain times, sizeable losses and sell-offs on-equity markets often lead to the liquidation of even safe-haven assets to meet margin calls or stem wider portfolio drawdowns. On April 1, Schiff said, 'Today, as economic uncertainty spooks investors, they're again dumping stocks, but gold is rising. Gold has replaced Treasuries as the global safe haven. The implications are ominous' on X. According to the latest data, the market capitalization of leading tokenized gold cryptocurrencies is about $1.59 billion, with a 24-hour trading volume of about $113.7 million. This is a 1.93% decrease in the overall market cap and a 43.25% decrease in 24-hour trading volume.
Yahoo
04-04-2025
- Business
- Yahoo
Gold-Backed Cryptocurrencies Retreat From All-Time Highs Amid Stock-Market Rout
Gold-backed cryptocurrencies like Paxos Gold (PAXG) and Tether Gold (XAUT) retreated from record highs on Friday amid a global financial-markets sell-off that erased $2.5 trillion from U.S. equities alone in a single day after U.S. President Donald Trump unveiled his reciprocal tariffs. The tokens, which are backed by physical gold and track its price, initially rallied as investors sought shelter from the uncertainty the tariffs introduced. Gold is usually seen as a haven investment, but large-scale losses in equity markets often force investors to liquidate safer assets to cover margin calls and cash out losses. PAXG climbed to an all-time high of $3,191 with XAUT following closely behind to reach $3,190, exceeding spot gold's peak of $3,167. The initial rise didn't last, with PAXG dropping to $3,074 and XAUT to $3,064, mirroring gold's pullback to $3,038 per ounce. The tariffs announced on Wednesday spooked markets with their breadth and unclear targets. Investors, already jittery from a volatile global outlook, responded swiftly. The S&P 500 posted one of its steepest drops since the COVID-era panic in 2020 on Thursday, while the Nasdaq 100 saw its worst single-day point loss in history according to the Kobeissi Letter. The rout extended into a second day, with the MSCI World Index dropping 4.3% on Friday after losing 3.7% on Thursday. Still, gold-backed tokens remain 17% higher since the start of the year. The rally has been driven by Federal Reserve interest-rate cuts, sustained demand from Asia and a wave of central bank buying earlier in the year. In February, central banks reported net gold purchases of 24 metric tons, according to the World Gold Council. Poland led the pack, adding 29 tons and bringing its total reserves to 480 tons, now 20% of its foreign exchange holdings. China, Turkey, Jordan, and Qatar also increased their holdings. Sign in to access your portfolio
