Gold-Backed Stablecoins Approach $4 Billion Market Capitalization in 2025 Surge

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Gold-backed stablecoins have reached approximately $4 billion in market capitalization, nearly tripling since the start of 2025, according to market data. This growth has pushed tokenized bullion into the spotlight, fueled by rising gold prices and a major issuer’s vault expansion.

One token accounts for approximately half of the total market, while another major token holds a significant share. The two together represent nearly 90% of tokenized gold holdings. The leading token surpassed its competitor following supply expansion throughout the year.

The growth in tokenized gold has occurred alongside a substantial increase in gold prices year-to-date. This rise is attributed to macroeconomic uncertainty, geopolitical tensions, and sustained global demand for the precious metal.

Gold-backed stablecoins enable investors to hold fractional ownership of physical gold bars stored in secure vaults. They provide exposure to gold through blockchain-based tokens that can be traded on cryptocurrency platforms like those for Bitcoin and Ethereum.

A major stablecoin issuer has become a notable institutional holder of gold. It has acquired quantities that place it among the top global gold holders according to International Monetary Fund data, ahead of several national reserves including many from the US and other nations.