Gold-backed cryptocurrency surges amid global trade uncertainty

Gold-backed cryptocurrencies surged in value after U.S. President Donald Trump announced tariffs on April 2.

Tether Gold (XAUT) and Paxos Gold (PAXG) reached all-time highs on April 22, with Tether Gold hitting $3,529 and Paxos Gold recording a peak of $3,520, according to CoinMarketCap. Two other gold-backed cryptocurrencies, Quorium (QGOLD) and Kinesis Gold (KAU), have risen 8.5% and 7.6%, respectively, over the past 30 days. Data from CoinGecko suggests that all four tokens have risen 40% or more over the past 12 months.

According to a report from Tether, the increase in demand for XAUT is due to macroeconomic factors such as increased global economic uncertainty, geopolitical conflicts, and rising demand for inflation-fighting assets.

The value of gold has risen significantly since U.S. President Trump re-initiated the trade war. On April 2, when Trump announced the “liberation day” of tariffs, the price of an ounce of gold was $3,115. As of April 28, the current price is $3,335, up 7% in just 30 days.

Gold is often seen as a hedge against inflation and often attracts investors during times of economic uncertainty. Similarly, Bitcoin (BTC), known as “digital gold,” has risen 14% in the same period.

Growing RWA Market

Real-world asset (RWA) tokenization — products that bring assets such as precious metals, bonds, and real estate to the blockchain — is a growing market. According to RWA.xyz, the tokenized RWA market cap (excluding stablecoins) is currently $21.6 billion, up 8.6% in the past 30 days.

Tether Gold and Paxos Gold are examples of RWA tokenization. Each token in both products is purportedly backed by one ounce of actual gold. Tether’s gold reserves are reportedly stored in Switzerland, while Paxos stores gold in London. Tokenized gold has emerged as a strong cryptocurrency use case in 2025 and reached a two-year high in trading volume on April 10.

Tokenized gold has several advantages over more common gold investment vehicles. For example, settlement through these funds is instant, enabling rapid transactions. In addition, some tokenized gold tokens can be used to purchase goods and services, while traditional instruments are usually only redeemable for fiat currency.