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Tokenized gold spot trading volume hit $90.7 billion in the first quarter of 2026. For context, that’s more than the $84.6 billion recorded across all twelve months of 2025.
In other words, the market compressed an entire year’s worth of activity into 90 days, then kept going. Tokenized gold trading was under $1 billion as recently as 2020.
The numbers behind the surge
The Q1 2026 figure represents a staggering acceleration from the previous quarterly peak of $32 billion in Q4 2025. That’s roughly a tripling in volume from one quarter to the next.
The broader tokenized gold market cap has swollen to $15 billion, up from $10 billion at the end of 2025. A 50% jump in market capitalization over just a few months suggests this isn’t simply existing holders trading more frequently. New capital is flowing in.
Paxos and Tether remain the dominant forces, controlling over 70% of the tokenized gold market between them. Both issuers back their tokens with physical gold reserves.
With gold prices hovering around $2,500 per ounce in early 2026, the appeal of tokenized versions is straightforward. You get exposure to the same underlying asset without dealing with storage costs, insurance headaches, or the logistical nightmare of actually moving physical bars.
How we got here
Tokenized gold has been around since 2019, but for years it was a niche curiosity. The real inflection point came in 2025, when annual volume exploded to $84.6 billion from levels that were a fraction of that figure in prior years.
Instead of buying ETF shares during market hours or negotiating over-the-counter deals for physical bullion, investors could buy and sell tokenized gold 24 hours a day, seven days a week, on decentralized exchanges with near-instant settlement.
Analysts estimate the overall RWA market cap could push past $500 billion by the end of 2026, encompassing everything from treasuries and real estate to commodities and credit instruments.
What this means for investors
ETFs like GLD and IAU have long been the go-to instruments for investors seeking gold exposure without physical ownership. But they come with management fees, operate during limited market hours, and settle on T+1 or T+2 timelines. Tokenized gold settles almost instantly and trades continuously.
The concentration risk is worth watching. When two issuers control more than 70% of a market, the ecosystem is only as resilient as those entities. A regulatory action against either Paxos or Tether, or questions about reserve backing, could send shockwaves through the entire tokenized gold space.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
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