Tokenized gold trading has reached its highest level in two years, surpassing $1 billion in weekly volume as investors flock to safe-haven assets amid escalating global tensions triggered by U.S. President Donald Trump’s reintroduction of import tariffs.
This marks the first time tokenized gold has crossed the $1 billion threshold since March 2023, a period marked by a U.S. banking crisis that saw the collapse of Silicon Valley Bank, Silvergate’s voluntary liquidation, and the shutdown of Signature Bank by New York regulators.
According to a report from CEX.io shared with Cryptonews.com, interest in tokenized gold began surging again in early February 2025, as fears of a renewed global trade war began impacting digital asset markets.
Trump’s Tariffs Fuel Tokenized Gold Surge After January Announcement
The impact of Trump’s tariffs, first announced on Jan. 20, has been especially pronounced in the tokenized gold sector.
Paxos Gold (PAXG) trading volume has increased over 900%, Tether Gold (XAUT) is up more than 300%, and Kinesis Gold (KAU) has seen an astonishing 83,000% spike in activity.
Collectively, tokenized gold projects have seen a 21% increase in market capitalization and a 1,000% jump in volume since Trump’s return to office.
These digital gold assets fall under the broader real-world asset (RWA) tokenization trend, which involves minting financial instruments and physical goods—like real estate and art—on blockchain networks.
While still early in development, RWAs like tokenized gold are gaining traction as investors look for diversification amid macroeconomic instability.
President Trump issued an executive order on Crypto
In the executive order,
Dollar backed stablecoins will be promoted to protect the US Dollar.
Telcoin is on track to become the first WEB3 firm to issue a fully regulated stablecoin called eUSD.
My Thread
… https://t.co/RPASN9BwJl pic.twitter.com/wAEqp6Lf6T
— Angelica Saldaña S.T.B.
(@AngelofYHVH) January 24, 2025
The surge in tokenized gold trading coincides with a record rally in physical gold prices, which hit an all-time high of $3,118 per ounce in late March.
Year-to-date, gold is up over 18%, while Bitcoin has declined more than 12%, according to TradingView data.
“Tokenized gold is emerging as one of the key diversification strategies among crypto-native users, alongside Bitcoin,” said Alexandr Kerya, VP of Product Management at CEX.IO.
“It provides a safer and more stable approach to portfolio management, enabling users to stay within the crypto ecosystem while benefiting from the value and stability of the underlying physical asset.”
As reported, cryptocurrency markets faced a brutal correction on what’s being dubbed “Black Monday,” with total liquidations exceeding $1.36 billion in the day.
Crypto wasn’t alone in the selloff. U.S. stock futures also plunged Sunday night, heightening fears of a broader market crash.
S&P 500 futures fell 5.98%, Nasdaq 100 futures slid 6.2%, and Dow futures dropped 5.5%, all pointing to a chaotic start to the trading week.
Trump’s Trade Moves Trigger Renewed Flight to Stablecoins and Tokenized Assets
Trump’s trade policies have reignited investor appetite for both stable and tokenized assets, mirroring the flight to safety seen during the 2023 banking crisis.
As reported, Tether, the issuer of the world’s most traded stablecoin, is considering launching a U.S.-only version of its token if the Trump administration introduces favorable regulations to support domestic stablecoin development.
Paolo Ardoino, CEO of Tether, said that discussions are underway with U.S. regulators regarding the framework for stablecoins.
The post Trump’s Tariffs Spark Digital Gold Boom: Tokenized Gold Trading Volume Soars Past $1B appeared first on Cryptonews.
