“Tokenised gold ...combines exposure to gold with 24/7 trading, fractional ownership, fast transferability, agentic trading, and in some cases redemption into physical bullion”1inch co-founder Sergej Kunz @deacix in Gulf News - on a market that just crossed $6Bhttps://t.co/LJX72eXLJn ...

Group 1: Gold Market Performance - Gold reached an all-time high of $5,417 per ounce at the end of January 2026 and has traded above $5,000 recently, driven by political chaos and market conditions [1] - The rise in gold prices has led to a surge in tokenised gold protocols, which have been the top performers in the market since the beginning of the year [1] Group 2: Growth of Tokenised Gold - Tether Gold has increased by 62% to a market capitalisation of $3.7 billion since January 1, while Paxos Gold has grown by 48% to $2.4 billion [2] - Smaller tokenised gold players, such as Pleasing Gold and Matrixdock Gold, have also seen significant growth, with Pleasing Gold's market capitalisation reaching $102 million and a 21% increase since the start of the year, and Matrixdock Gold growing by 23% to over $69 million [6] Group 3: Market Dynamics and Investor Behavior - South Korean investors are increasingly purchasing gold-pegged stablecoins to avoid high tax bills associated with physical gold purchases, as crypto trading is not yet taxed in South Korea [4] - The appeal of tokenised gold products lies in their ability to provide exposure to gold without the tax implications of buying physical gold [4] - In the broader decentralized finance (DeFi) space, only one other protocol, Ethena, has seen growth, while many others have experienced declines in dollar value of user deposits [3]

Core Insights - Crypto investors are increasingly turning to tokenised gold as its price surpasses $4,000, marking its best year-to-date performance in over 45 years [1] - The total value of tokenised gold in circulation exceeds $3 billion, with a 53% increase in the number of crypto wallets holding tokenised gold since the beginning of the year [1] - The supply of Tether Gold has increased by 52% and Paxos Gold by 50% since January [2] Market Performance - Gold has surged 54% since the start of the year, outperforming Bitcoin's 31% gain, positioning it for its strongest annual performance since 1979 [3] - The rise in gold prices is attributed to concerns over long-term debt sustainability and the erosion of fiat currencies due to excessive money printing and inflation [3] Investment Trends - Investors are gravitating towards gold and Bitcoin as reliable stores of value amid fears of currency debasement, a trend further fueled by Japan's new Prime Minister advocating for increased public spending and tax cuts [4] - The record rise in gold prices is prompting both traditional and crypto investors to reassess the asset, with tokenised gold gaining traction as a modern investment vehicle [5] Tokenised Gold Advantages - Tokenised gold allows holders to engage in decentralized finance applications on blockchains like Ethereum, transforming gold into an active asset for lending, borrowing, and wealth building without reliance on fiat currency [5][6]