Tether’s XAUT and Paxos’ PAXG, the two largest gold-backed tokens, posted record monthly trading volumes in September as spot gold pushed above $3,800.
Updated Sep 30, 2025, 12:05 p.m. Published Sep 29, 2025, 7:29 p.m.
Gold’s historic rally accelerated on Monday, with spot prices punching through $3,800 per ounce to set fresh all-time record, extending a torrid year in which bullion is up roughly almost 47% year-to-date.
That surge is echoing on across crypto rails, with gold-backed tokens climbing to an all-time high market capitalization of $2.88 billion, CoinGecko data shows. Tokenized versions of the metal are backed by physical reserves but settle on blockchain rails, offering round-the-clock trading and near-instant transfers.
XAUT$3,858.34 and Paxos’ PAXG$3,865.50, both tokens issued by firms predominantly known for their stablecoins, are dominating the category. XAUT’s capitalization stood near $1.43 billion and PAXG’s at roughly $1.12 billion, both at their respective all-time highs.
Liquidity has swelled alongside the rally, too. PAXG attracted more than $40 million in net inflows during September and set a fresh trading volume record surpassing $3.2 billion in monthly turnover.
XAUT also posted a record $3.25 billion in monthly volume, per DeFiLlama. Meanwhile, the token’s market cap growth came solely from the underlying metal’s appreciation, as no new token minting happened this month after August’s $437 million jump.
The tokenized gold market could continue gaining as macro conditions remain supportive for the yellow metal. Investors expectations mount for more Federal Reserve rate cuts and a softer U.S. dollar, while anxiety builds over a possible government shutdown in the U.S. Meanwhile, bitcoin BTC$114,389.67, often dubbed as “digital gold,” is lagging behind gold with a 22% year-to-date return.
Read more: Bitcoin to Join Gold on Central Bank Reserve Balance Sheets by 2030: Deutsche Bank
AI Disclaimer: Parts of this article were generated with the 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.
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