The value of tokenized gold on the Ethereum Network is constantly increasing, already reaching $2.3 billion. This increase reflects increased reliability in digital assets supported by physical gold, which simplifies global liquidity and access to certain markets of demand.
Tokenization eliminates barriers for small investors, Store ingots or allow money investments without the cost or complexity that relies on intermediaries.
Tether Gold (Xaut) and Paxos Gold (PAXG) lead this market and provide a digital route to invest in historically bullish assets, as seen in the next terminal token chart.
PAXG dominated with a capitalization of $986 million followed by a $861 million XAUT, accounting for 77 and 86 in the crypto rankings of market capitalization, as shown below.
The circulation products are different, with PAXG having 281,720 units and Xaut having 246,520 units. Like stablecoins, Both maintain fixed value at a gold ounce priceguarantees stability against the volatility of other cryptocurrencies.
Furthermore, tokenized gold is integrated as a key category of the real world asset industry (RWA). As shown in the Cryptopedia, Cryptootic Educational section, RWA is a token that represents tangible assets such as gold, properties, raw materials, bonds, patents, and copyrights.
The popularity of PAXG and XAUT corresponds to ease of use in digital transactions as it can be transferred globally in minutes without expensive intermediaries. This accessibility has placed tokenized gold as an attractive option to diversify your portfolioespecially in the context of global economic uncertainty.
As cryptocurrency infrastructure evolves, the RWA market will become tokenized and expand, attracting both individual and institutional investors.
