Gold-backed cryptocurrencies have spiked in worth amid the global trade warfare unleashed by US President Donald Trump’s April 2 tariffs.
Tether Gold (XAUT) and Paxos Gold (PAXG) reached all-time highs on April 22, with Tether Gold touching $3,529 and Paxos Gold recording a peak of $3,520, according to knowledge from CoinMarketCap. Two different gold-backed cryptocurrencies — Quorium (QGOLD) and Kinesis Gold (KAU) — have seen rises of 8.5% and 7.6%, respectively, previously 30 days. All 4 tokens are up 40% or extra previously 12 months, CoinGecko knowledge exhibits.
Associated: Tether clocks $13B in 2024 profits, US bond holdings hit all-time highs
According to a report by Tether, the elevated demand for XAUT is because of macroeconomic components, reminiscent of escalating global financial uncertainty, geopolitical conflicts, and a rising demand for inflation-resistant belongings.
Since US President Trump’s renewed trade warfare, gold has elevated considerably in worth. On April 2, Trump’s “Liberation Day,” when the tariffs had been introduced, the value of 1 ounce of gold was $3,115. On the time of this writing, on April 28, the ounce worth is at $3,335, representing a 7% soar in lower than 30 days.
Gold, typically seen as a hedge towards inflation, often attracts traders throughout occasions of financial uncertainty. In comparable strains, Bitcoin (BTC), also known as “digital gold,” has soared 14% throughout the identical interval.
Rising RWA market
Actual-world asset (RWA) tokenization — merchandise that deliver belongings like treasured metals, bonds, and actual property onto the blockchain — is a rising market. According to RWA.xyz, the tokenized RWA market capitalization (excluding stablecoins) stands at $21.6 billion, up 8.6% over the previous 30 days.
Tether Gold and Paxos Gold are examples of RWA tokenization. Every coin in each merchandise is reportedly backed by one troy ounce of precise gold. Tether is claimed to retailer its gold reserves in Switzerland, whereas Paxos retains its gold in London. Tokenized gold has been a robust crypto use case in 2025, reaching a two-year high in trading volume on April 10.
Tokenizing gold has just a few benefits over extra frequent funding devices that present publicity to gold. As an illustration, settlements via these funds are prompt, enabling fast buying and selling. As well as, some tokenized gold tokens can be used to purchase goods and services, whereas conventional devices can often be redeemed just for fiat foreign money.
Associated: Tether launches gold-backed, US dollar stablecoin Alloy
