Tokenized Gold Hits $1.4B Record as Trading Volumes Surge

The market capitalization of tokenized gold surged to an all-time high of $1.4 billion in March, driven by a parallel rally in physical gold prices, which crossed $3,000 per ounce. According to CoinDesk Data's monthly stablecoin report, this rise was accompanied by a spike in trading volumes, surpassing $1.6 billion — the highest in over a year.

Gold-backed tokens like Tether’s XAUT and Paxos’ PAXG led the market, with respective market caps of $749 million and $653 million. As investor demand for digital gold increased, tokenized assets gained traction as a convenient alternative to traditional gold investing.

Meanwhile, the broader stablecoin market, including fiat and commodity-backed tokens, climbed above a $231 billion market cap, marking its 18th consecutive month of growth. Tether’s USDT reached a record supply of $144 billion, though its market share fell to 62.1% — its lowest since March 2023 — amid growing competition. Circle’s USDC rose 7% to nearly $60 billion in market cap.

Ethena’s new USDtb stablecoin, backed by BlackRock’s tokenized money market fund BUIDL, rapidly grew to over $1 billion in reserves, ranking 8th among stablecoins by market cap.

On centralized exchanges, USDT remained dominant with 75.7% of trading volume among the top ten stablecoins. USDC and FDUSD followed, rising to 13.6% and 10%, respectively.

In Europe, the Markets in Crypto-Assets (MiCA) regulation prompted exchanges like Kraken and Coinbase to delist non-compliant stablecoins, benefiting Circle’s EURC. The euro-backed token surged nearly 30% to a $157 million market cap, capturing 45% of the euro stablecoin market.

This evolving landscape highlights the growing relevance of tokenized assets and regulatory frameworks shaping the stablecoin market globally.