Gold-backed cryptocurrencies have spiked in value amid the global trade war unleashed by US President Donald Trump's April 2 tariffs.
Gold-backed cryptocurrencies have spiked in value amid the global trade war unleashed by US President Donald Trump’s April 2 tariffs.
Tether Gold (XAUT) and Paxos Gold (PAXG) reached all-time highs of $3,529 and $3,520, respectively, on April 22, according to data from CoinMarketCap. Two other gold-backed cryptocurrencies — Quorium (QGOLD) and Kinesis Gold (KAU) — have seen rises of 8.5% and 7.6%, respectively, in the past 30 days. All four tokens are up 40% or more in the past 12 months, CoinGecko data shows.
According to a report by Tether, the increased demand for XAUT is due to macroeconomic factors, such as escalating global economic uncertainty, geopolitical conflicts, and a rising demand for inflation-resistant assets.
Since US President Trump’s “Liberation Day” on April 2, when he announced tariffs, the price of one ounce of gold has increased significantly. At the time of the announcement, the ounce price was $3,115. As of April 28, the ounce price is at $3,335, marking a 7% increase in less than 30 days.
Gold, often recognized as a hedge against inflation, typically attracts investors during times of economic uncertainty. In a related development, Bitcoin (BTC), frequently referred to as “digital gold,” has risen by 14% over the same period.
Real-world asset (RWA) tokenization — products that bring assets like precious metals, bonds, and real estate onto the blockchain — is a growing market. According to RWA.xyz, the tokenized RWA market capitalization (excluding stablecoins) stands at $21.6 billion, up 8.6% over the past 30 days.
Tether Gold and Paxos Gold are examples of RWA tokenization. Each coin in both products is reportedly backed by one troy ounce of actual gold. Tether is said to store its gold reserves in Switzerland, while Paxos keeps its gold in London. Tokenized gold has been a strong crypto use case in 2025, reaching a two-year high in trading volume on April 10.
Tokenizing gold offers a few advantages over more common investment instruments that provide exposure to gold. For instance, settlements through these funds are instant, enabling rapid trading. In addition, some tokenized gold tokens can be used to purchase goods and services, whereas traditional instruments can typically be redeemed only for fiat currency.
