The total market for physical gold is estimated at $30,1 trillion, representing approximately 220,000 tonnes of metal. In contrast, the market capitalization of tokenized gold has reached $5,1 billion, which accounts for less than 0,02% of the total gold market.
Tokenized gold currently dominates the on-chain commodities sector, making up over 99% of its subcategory and roughly 11% of all real-world asset tokenization. The sector is led by Tether Gold (XAUt) with a market cap of $2,4 billion to $2,7 billion, and Pax Gold (PAXG) with $1,8 billion to $1,9 billion.
These two tokens collectively control between 89% and 98% of the total tokenized gold supply. Both assets are backed by physical gold stored in LBMA-certified vaults, allowing investors to track spot prices without physical storage requirements.
The market capitalization for tokenized gold has more than tripled since late 2024, when it was valued at under $1,5 billion. In the first quarter of 2026, spot trading volume for these tokens reached approximately $90,7 billion.
While products like PAXG are regulated by the New York Department of Financial Services, a comprehensive global regulatory framework remains in development. Currently, tokenized gold is integrated into decentralized finance protocols for lending and borrowing.
