This week, Tokenized gold trading went over $1 billion for the first time in two years. The last time this happened was in March 2023, when several U.S. banks, including the Silicon Valley Bank, and the voluntary liquidation of Silvergate Bank, collapsed, and people started moving their money to safer places.
Now, investors are doing the same thing. This time, the trigger is U.S. President Donald Trump’s new import tariffs.
These tariffs have made people worry about another trade war, so many are looking for safer ways to keep their money. One of those ways is tokenized gold.
Tokenized gold is digital gold backed by real gold. It lets people trade gold on the blockchain without owning physical bars or coins. Trading in digital gold has gone up dramatically since Trump’s first tariff announcement on January 20.
According to a report by crypto platform CEX.io, Paxos Gold (PAXG) volume rose over 900%. Tether Gold (XAUT) went up more than 300%. Kinesis Gold (KAU) saw the biggest spike, with its trading volume increasing by more than 83,000%.
This is the first time tokenized gold has passed the $1 billion mark since the U.S. banking crisis in 2023, when Silicon Valley Bank and other banks shut down. Back then, people also rushed to gold because they were unsure about the financial system.
CEX.io lead analyst Illia Otychenko said, “Tokenized gold presents a compelling alternative for crypto-native investors who might otherwise look to Bitcoin or stablecoins.”
He also said, “In this context, tokenized gold has primarily served as a diversification tool, gaining increasing traction in investor portfolios as market uncertainty deepens.”
Physical gold is also doing well. On March 31, it hit a record high of over $3,100 per ounce. At the time of writing, it was trading above $3,118. Since the start of 2025, gold is up over 18%, while Bitcoin is down more than 12%, according to TradingView.
Tokenized gold is part of a crypto concept called real-world asset tokenization. Essentially, you take assets like gold, art, or real estate and turn them into digital tokens that you can trade on the blockchain.
Currently, tokenized gold isn’t substituting physical gold but is gaining prominence as a popular investment option among investors seeking to have something safe in their online portfolio.
Also Read: Cardano Founder Announces Midnight Airdrop For 37 Million User
