Digital gold capitalization hits record following physical asset growth

Gold prices reached new all-time highs on Friday, driving a record surge in the market capitalization of tokenized gold. According to a CoinDesk Data report, the market size of digital assets backed by the precious metal hit $1.4 billion in March. Simultaneously, trading volumes climbed to a yearly high of $1.6 billion.

This growth coincided with a rally in physical gold prices, which surpassed $3,000 per ounce in March. Among the top precious metal-backed tokens, Tether’s XAUT and Paxos’ PAXG dominate, with market capitalizations of $749 million and $653 million, respectively.

The broader stablecoin market, which includes tokens linked to fiat currencies and commodities, continued its strong growth trajectory. In March, its total market capitalization reached $231 billion, marking the 18th consecutive month of expansion.

CoinDesk analysts attribute the active development of tokenized assets, particularly those tied to gold, to growing investor interest in alternative capital preservation methods amid inflation risks and global economic uncertainty.