-
Back to menu
Prices
-
Back to menu
-
Back to menu
Indices -
Back to menu
Research
-
Back to menu
Events -
Back to menu
Sponsored
-
Back to menu
Videos -
Back to menu
-
Back to menu
-
Back to menu
Webinars
Select Language
Tether’s XAUT and Paxos’ PAXG, the two largest gold-backed tokens, posted record monthly trading volumes in September as spot gold pushed above $3,800.
By Krisztian Sandor, AI Boost|Edited by Stephen Alpher
Sep 29, 2025, 7:29 p.m.
- The tokenized gold market climbed to roughly $2.9 billion as the yellow metal surged to new fresh records.
- Tether Gold (XAUT) and PAX Gold (PAXG) tokens hit record monthly volumes surpassing $3.2 billion each in September, with PAXG also attracting $40 million net inflows, DefiLlama data shows.
- Gold’s rally was fueled by Fed policy bets, inflation pressures and potential U.S. government shutdown.
Gold’s historic rally accelerated on Monday, with spot prices punching through $3,800 per ounce to set fresh all-time record, extending a torrid year in which bullion is up roughly almost 47% year-to-date.
That surge is echoing on across crypto rails, with gold-backed tokens climbing to an all-time high market capitalization of $2.88 billion, CoinGecko data shows. Tokenized versions of the metal are backed by physical reserves but settle on blockchain rails, offering round-the-clock trading and near-instant transfers.
STORY CONTINUES BELOW
XAUT$3,830.34 and Paxos’ PAXG$3,841.90, both tokens issued by firms predominantly known for their stablecoins, are dominating the category. XAUT’s capitalization stood near $1.43 billion and PAXG’s at roughly $1.12 billion, both at their respective all-time highs.
Liquidity has swelled alongside the rally, too. PAXG attracted more than $40 million in net inflows during September and set a fresh trading volume record surpassing $3.2 billion in monthly turnover.
XAUT also posted a record $3.25 billion in monthly volume, per DeFiLlama. Meanwhile, the token’s market cap growth came solely from the underlying metal’s appreciation, as no new token minting happened this month after August’s $437 million jump.
The tokenized gold market could continue gaining as macro conditions remain supportive for the yellow metal. Investors expectations mount for more Federal Reserve rate cuts and a softer U.S. dollar, while anxiety builds over a possible government shutdown in the U.S. Meanwhile, BTC$114,208.38, often dubbed as “digital gold,” is lagging behind gold with a 22% year-to-date return.
Read more: Bitcoin to Join Gold on Central Bank Reserve Balance Sheets by 2030: Deutsche Bank
AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.
More For You
Sep 9, 2025
Combined spot and derivatives trading on centralized exchanges surged 7.58% to $9.72 trillion in August, marking the highest monthly volume of 2025
What to know:
- Combined spot and derivatives trading on centralized exchanges surged 7.58% to $9.72 trillion in August, marking the highest monthly volume of 2025
- Gate exchange emerged as major player with 98.9% volume surge to $746 billion, overtaking Bitget to become fourth-largest platform
- Open interest across centralized derivatives exchanges rose 4.92% to $187 billion
More For You
By Helene Braun, AI Boost
2 hours ago
A recent rule change allows exchanges to list crypto ETFs without individual SEC review, streamlining the process, with approval potentially happening any day.
What to know:
- The SEC has asked issuers to pull their 19b-4 filings.
- A recent rule change lets exchanges list certain commodity-based crypto ETFs without a separate regulatory review.
- Several ETF applications could now be approved any day now, an analyst said.
