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Tokenized Gold Surges to $3.5 Billion Onchain: Insights into Commodity Tokenization

Tokenized Gold Surges to $3.5 Billion Onchain: Insights into Commodity Tokenization

The world of blockchain is bridging the gap between traditional finance and crypto like never before. A recent post from Token Terminal highlights this shift, showing how tokenized commodities—starting with gold—are gaining serious traction onchain. If you're into meme tokens or broader blockchain tech, understanding this could give you an edge in spotting the next big trend.

Tokenization basically means turning real-world assets, like physical gold, into digital tokens on a blockchain. This allows for fractional ownership, easier trading, and integration with DeFi protocols. No more dealing with vaults or paperwork; it's all on the chain, secure and transparent.

According to the data shared, there's now about $3.5 billion worth of tokenized gold floating around on various blockchains. That's a hefty jump from roughly $1.2 billion back in January 2025. In just ten months, we've seen nearly a threefold increase—talk about momentum!

Chart illustrating the growth of tokenized gold market cap from 2021 to 2025

Breaking Down the Chart

The stacked area chart tracks the tokenized market cap over time, from early 2021 to now. It starts slow, with minimal activity, but things pick up around 2023 and explode in 2025. The different shades represent various tokenized gold products across networks like Ethereum, BNB Chain, Base, Polygon, and XDC Network.

This growth isn't just hype; it's backed by real demand. As spot gold prices hit records in 2025—surpassing $3,000 per ounce in some months—investors are turning to tokenized versions for convenience. Recent reports show daily trading volumes for these tokens topping $1 billion, outpacing even some traditional gold ETFs.

Key Players in Tokenized Gold

Let's zoom in on the tokens driving this surge, based on the chart and market data:

  • XAUT (Ethereum)​: Issued by Tether, this is one of the heavyweights. Each XAUT represents one troy ounce of gold stored in secure vaults. It's popular for its stability and liquidity in DeFi. Market cap? It's a big chunk of that $3.5 billion pie.

  • PAXG (Ethereum)​: From Paxos, PAXG is another 1:1 backed gold token. It's audited regularly and redeemable for physical gold, making it a favorite for institutional players. Think of it as gold you can stake or lend in crypto apps.

  • XAUTO (Ethereum)​: This seems to be a variant or related token from Tether's ecosystem, possibly an optimized version for certain use cases. It's contributing to the Ethereum dominance in this space.

  • XAUM (Ethereum and BNB Chain)​: Backed by Meld, XAUM offers tokenized gold with a focus on accessibility. Its presence on multiple chains like BNB shows how tokenization is going cross-chain for better scalability and lower fees.

  • ComTech Gold (XDC Network)​: CGO from ComTech is tokenized gold on the XDC Network, which is enterprise-focused. It's gaining traction for supply chain and trade finance integrations.

  • VNX Gold (Ethereum, Base, Polygon)​: VNXAU is Swiss-regulated tokenized gold, emphasizing compliance. Its multi-chain approach—Ethereum, Base, and Polygon—makes it versatile for users avoiding high gas fees.

These tokens aren't just sitting there; they're being used in lending, borrowing, and even as collateral in meme token ecosystems. For blockchain practitioners, this means new ways to hedge against volatility or build hybrid portfolios.

Why This Matters for Meme Tokens and Beyond

While meme tokens thrive on community and virality, the rise of real-world assets (RWAs) like tokenized gold could influence the space. Imagine meme projects tokenizing quirky commodities or tying into gold-backed mechanics for stability. It's a bridge that could bring more serious money into crypto, benefiting everyone from degens to devs.

DeFi protocols are already integrating these assets. For instance, you can use PAXG in Aave for loans or in Uniswap pools. As adoption grows, expect more innovation—maybe even meme-inspired gold tokens?

If you're building or trading in the meme world, keep an eye on RWAs. Tools like CoinGecko's tokenized gold category or CoinMarketCap's listings are great for tracking.

In summary, tokenized gold's $3.5 billion milestone is a signpost for the future. Commodities are coming onchain, and it's happening fast. Stay tuned— the next wave might just be silver, oil, or something even wilder.

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