The World Gold Council reports that the digital gold market, currently valued at $45 billion to $55 billion, could attract up to $700 billion in latent demand. This sector represents less than 1% of the $13 trillion physical gold investment market. The findings are based on a global survey of over 12,000 retail investors and expert interviews.
Tokenized gold products, specifically Tether Gold and Paxos Gold, recorded $90 billion in cumulative spot trading volume in the first quarter of 2026. The total value of outstanding tokenized gold has grown fivefold since late 2024, reaching $6 billion. Daily trading volumes for the two largest tokens increased by approximately 45% year-over-year.
The report identifies trust, access, utility, and cost as the primary barriers to adoption. Nearly 80% of surveyed investors prioritize provider trust, while 40% express concerns regarding custody failures or fraud. Adoption rates are significantly higher in regions where digital gold is integrated into mainstream platforms, such as WeChat, Paytm, and PhonePe.
Yield generation is a key driver for investor interest. Decentralized protocols like Aave hold over half of all tokenized gold deposited in DeFi, with borrowing demand for Tether Gold frequently hitting supply caps in early 2026. Additionally, platforms like Arch Lending began accepting major gold tokens as collateral in September 2026.
The World Gold Council projects the market will reach between $160 billion and $170 billion by 2031 under a base-case scenario, growing at an annual rate of 27%. Optimistic forecasts suggest a potential expansion to $280 billion, while a bear-case scenario estimates growth to $80 billion if adoption barriers persist.
