Tokenized Gold on Ethereum Reaches $2.4 Billion

Reports from Token Terminal confirm nearly a 100% year-to-date increase in the tokenized gold supply on Ethereum, fueled by PAX Gold (PAXG) and Tether Gold (XAUT). Ethereum now holds over 77% of the tokenized commodities market. Paxos Trust Company and Tether Limited, issuers of PAXG and XAUT respectively, are central to this growth.

Ethereum serves as the main settlement layer, offering liquidity and transaction support for gold-backed tokens. Key players observe tangible impacts on the broader crypto ecosystem. Ethereum’s network activity has grown, reinforcing its position in the real-world asset chain.

The growing tokenization complements a stablecoin market that has reached an unprecedented $165 billion on Ethereum. The interest in tokenized gold, recognized for its compliance and liquidity, reflects a significant institutional appetite. DeFi participants anticipate increased stakeholder engagements, driven by the potential for new financial products.

Tokenized gold on Ethereum reaches $2.4 billion; total supply has grown nearly 100% year-to-date. According to Token Terminal; the main tokens include PAXG and XAUT; reflecting the continued expansion of on-chain gold assets. — PANews

Financial implications are evident as Paxos and Tether expand their tokenized offerings, achieving greater market penetration. With Ethereum ensuring technological and settlement benefits, the gold-backed tokens’ popularity remains evident on the decentralized networks. Regulatory scrutiny could intensify as the tokenized real-world assets gain attention, pressuring compliance frameworks. The continuing rise of tokenized assets may prompt further integration within financial systems, leveraging both Ethereum’s technology and network advantages.