Gold has always been a refuge in times of uncertainty. But in 2025, investors are increasingly choosing a very different way to own it, not in vaults or ETFs, but on the blockchain.
Last year, on-chain gold products created billions of dollars in new value, outpacing physical bullion and most gold exchange-traded funds, as trading activity continued to migrate to blockchain platforms. By 2025, tokenised gold has emerged as one of the fastest-growing crypto asset categories, accounting for roughly one-fifth of the total net growth in real-world assets (RWAs).
Tokenised Gold Becomes a Standout RWA
According to a new study by CEX.IO, the market value of tokenised gold surged 177% year-on-year, while the number of holders nearly tripled. More than 115,000 new wallets were added over the year, a pace of adoption that exceeded most other RWA categories.
The report found that the tokenised gold market expanded from approximately $1.6 billion to $4.4 billion, generating nearly $2.8 billion in net value in 2025. That increase alone accounted for about 25% of all net inflows into the RWA sector, surpassing the combined growth of tokenised equities, corporate bonds, and non-US Treasury bond products.
Industry analysts cited by RWA.xyz say this reflects a broader shift among institutional and retail investors toward blockchain-based representations of traditional assets, particularly those with established safe-haven status.
Why On-Chain Gold Is Outperforming Physical Gold and ETFs
The rapid growth occurred during a banner year for gold itself. In 2025, gold’s total market value rose by more than 67%, driven by macroeconomic and political uncertainty. But tokenised gold expanded around 2.6 times faster than physical gold, despite that rally.
It also outperformed most large spot gold ETFs, which have traditionally been the preferred vehicle for liquid exposure. Analysts point to 24-hour global trading, instant settlement, and lower friction compared with traditional financial products as key advantages of on-chain gold.
CEX.IO estimates that in 2025, tokenised gold trading volumes reached $178 billion, with quarterly volumes climbing to $126 billion in the fourth quarter alone. That would make tokenised gold the second most-traded gold investment instrument globally, trailing only SPDR Gold Shares, the world’s largest gold ETF.
Tether Gold Drives the Market Surge
Much of the late-year momentum was driven by Tether Gold (XAUT), which accounted for 75% of all tokenised gold trading activity, up sharply from 27% in the third quarter.
For $4,627.47, XAUT dominates the sector. According to its website, Tether Gold has a market capitalisation of $2.42 billion and is backed by approximately 1,329 gold bars, equivalent to about 16,239 kilograms of physical gold stored in secure vaults.
Researchers say the concentration of liquidity in products like XAUT highlights a structural shift in gold trading, where incremental liquidity is increasingly forming on-chain rather than through traditional bullion markets or ETFs.
Tokenised Commodities Grow as Safe-Haven Demand Rises
The momentum extends beyond gold. The total market capitalisation of tokenised commodities has surpassed $4.3 billion, according to RWA.xyz, with the sector rising 18% over the past month. Tether Gold, at $1.9 billion, and Paxos Gold, at $1.7 billion, were the largest contributors.
The surge comes as investors seek protection amid growing macroeconomic and political uncertainty. Gold prices have climbed to historic highs, supported by concerns over inflation, monetary policy, and institutional stability.
Earlier this week, precious metals rallied sharply following reports of a criminal probe involving Federal Reserve Chair Jerome Powell, which raised fears about the independence of the U.S. central bank. At the same time, a worse-than-expected U.S. Consumer Price Index report strengthened expectations that the Federal Reserve could cut interest rates multiple times this year.
Lower expected rates place downward pressure on real yields and the U.S. dollar, increasing the appeal of gold as a non-yielding asset. Uncertainty around the future path of monetary policy has further reinforced gold’s role as a hedge, now increasingly accessed through blockchain-based instruments.
A Structural Shift in How Gold Trades
Taken together, the data suggest that tokenised gold is no longer a niche experiment. Instead, it is becoming a central pillar of the rapidly expanding real-world asset ecosystem.
As blockchain infrastructure matures and investor demand for transparent, liquid, and globally accessible assets grows, analysts say tokenised gold could play a defining role in how safe-haven investing evolves in the digital era.
