Core Viewpoint - A debate has arisen in the crypto community regarding the legitimacy of tokenized gold, with Binance founder Changpeng Zhao criticizing its true integration on the blockchain, while gold advocate Peter Schiff promotes a new blockchain-based tokenized gold platform [1][4]. Market Activity - Gold's recent rally in traditional markets has increased interest in its tokenized versions within the crypto space [2]. - The combined market capitalization of gold-backed digital assets surpassed $3 billion on October 7 and is currently over $3.75 billion [5]. - Trading volume for tokenized gold assets reached $640 million in 24 hours, driven by investor interest amid U.S. government shutdown and global economic uncertainty [7]. Tokenization Insights - Tokenized commodities, particularly gold, now represent over $3.5 billion of the total real-world asset (RWA) tokenization value, marking a 36% increase in the last month [8]. - Tether Gold (XAUT) and PAX Gold (PAXG) are leading the market, with market capitalizations of approximately $2.1 billion and $1.3 billion, respectively [8][6]. Platform Development - Peter Schiff's upcoming platform, Shift Gold, aims to allow users to buy gold through an app, store it in vaults, and transfer ownership digitally or redeem it for physical gold, promoting it as a stable digital asset [3].

Core Insights - Gold prices have experienced a significant decline, with a market capitalization loss of nearly $2.5 trillion, marking the largest two-day drop since 2013, trading at $4,058.19 per ounce, down 0.97% [1] - The total market cap of tokenized gold has decreased by approximately 7% in the past 24 hours, standing at $3.8 billion [2] Tokenized Gold Performance - Tether Gold (XAUt) saw a price drop of 4% in 24 hours, trading at $4,040.85 [3] - PAX Gold (PAXG) fell by 3.9%, with a trading price of $4,090.41, each token backed by one troy ounce of gold stored in LBMA vaults [3] - Kinesis Gold (KAU) decreased by more than 4%, trading at $131.19, with each token backed by 1 gram of gold [4] - VeraOne (VRO) was the most affected, dipping over 7% in 24 hours, trading at $129.83, with each token backed by 1 gram of LBMA gold [4]

Core Insights - Gold-linked digital assets are experiencing significant growth as gold prices exceed $4,370 per ounce, leading to the launch of new blockchain-based products that transform gold into on-chain financial instruments [1] - The tokenized gold sector has rapidly expanded in 2025, with total capitalization nearing $3.4 billion, a substantial increase from $500 million earlier this year, driven by institutional demand for stable, asset-backed instruments [2] - Tether has introduced XAUT0, an omnichain gold token, which links Solana to Tether's $175 billion cross-chain liquidity base, allowing each token to represent a fraction of a troy ounce of physical gold held in audited vaults [3] Market Dynamics - Over 7,300 XAUT0 tokens are currently in circulation, processing more than $25 billion in total bridge volume, indicating robust market activity [4] - Daily trading in tokenized gold has surpassed $600 million, reflecting strong demand for physical bullion [6] - Analysts highlight that tokenized gold serves as a bridge between traditional finance and digital liquidity, with tokens settling instantly and integrating into decentralized finance platforms [7] Price Performance - PAX Gold (PAXG) is trading around $4,413, having surged more than 65% year-over-year, while Tether Gold (XAUT) is priced near $4,360, gaining 63% [7] - The combined market capitalization of PAXG and XAUT is approaching $3.0 billion, showcasing the shift of physical value stores onto blockchains [7]

Core Insights - The convergence of digital currencies and traditional assets has led to the rise of gold-backed crypto tokens, also known as "tokenized gold," which combine the stability of gold with blockchain technology [1] Market Demand and Growth - The price of gold is reaching new all-time highs, driving increased demand for gold-backed tokens, with over $30 million worth of Tether Gold (XAUt) purchased by two crypto whales recently [2] - The total volume of tokenized gold has surged to approximately $3 billion, up from less than $500 million at the beginning of the year, with daily trading volumes exceeding $600 million [3] Characteristics of Gold-Backed Tokens - Gold-backed cryptocurrencies are digital tokens whose value is directly linked to physical gold held in reserve, typically representing ownership of one troy ounce or a fraction of it [4] - These tokens are stored by certified custodians, while the issuer retains legal ownership and commits to redeeming gold upon presentation of the token [5] Investor Appeal - Given the volatility of cryptocurrencies, gold-backed tokens may attract conservative investors seeking stability and real-world value, contrasting with more speculative assets like Bitcoin and Ethereum [5][6] - Tokenized gold offers digital convenience for traditional investors, including 24/7 trading and instant settlement, while maintaining the familiarity of a tangible asset [6] Leading Examples - Tether Gold (XAUt) and PAX Gold (PAXG) are among the top-performing gold-backed tokens in a market with a capitalization close to $3 billion [7]