Gold-backed crypto tokens top $3 billion as metal hits all-time high

Tokenized gold assets surged past a $3 billion market cap on Monday, marking a milestone for the onchain asset class as physical gold briefly topped $4,000 per ounce for the first time ever.

The market cap of gold-pegged tokens — including PAX Gold (PAXG), Tether Gold (XAUT), and Kinesis Gold (KAU) — rose 2.5% over the past 24 hours to $3.04 billion, according to CoinGecko data. Trading volume also spiked to $640 million.

PAXG and XAUT remain the dominant issuers, each trading just below $4,000. Prices are closely tracking spot gold, which crested to an all-time high of $4,007 per ounce early today before slightly retreating.

The broader rally in precious metals came as silver also jumped past $48.50 — its highest price since 2011.

It’s all unfolding against the backdrop of the sixth day of the U.S. government shutdown, which has sparked renewed investor interest in historical safe havens.

Equity markets also remain buoyant. The S&P 500 ticked to a fresh all-time high of 6,753 points — a record level for the benchmark U.S. equities index.

Bitcoin, meanwhile, notched its own all-time high on Monday, briefly touching $126,200, according to The Block’s price data, before pulling back to around $123,200 today.

The rally is also being framed as part of a broader “debasement trade.” The ongoing U.S. government shutdown has reignited concerns over fiat erosion, prompting investors to rotate into alternative stores of value.

“Digital assets, particularly bitcoin, are emerging as clear beneficiaries,” said Javier Rodriguez-Alarcón, chief investment officer at XBTO and a former BlackRock and JPMorgan executive.

However, the bitcoin/gold ratio — which tracks how many ounces of gold one bitcoin can buy — currently sits at 31.6, down from a December 2024 peak of over 40. The ratio’s decline suggests that while both assets have rallied in recent months, gold has outperformed bitcoin this year despite bitcoin’s 30% year-to-date rise.