Tether Gold and PAX Gold Dominate as Tokenized Commodities Hit $6.1 Billion

TLDR

• The tokenized commodities market has grown 53% in six weeks to over $6.1 billion, making it the fastest-growing sector in real-world asset tokenization
• Tether Gold and PAX Gold account for over 95% of the market, with Tether Gold reaching $3.6 billion and PAX Gold at $2.3 billion in market cap
• The sector has added $2 billion in value since January 1, 2026, outpacing tokenized stocks (42% growth) and tokenized funds (3.6% growth)
• Gold’s spot price rallied over 80% in the past year to reach an all-time high of $5,600 on January 29
• Tether acquired a $150 million stake in Gold.com on Thursday to expand access to tokenized gold through its platform

The tokenized commodities market has crossed $6.1 billion in total value, driven by strong demand for blockchain-based gold products. The market was valued at just over $4 billion at the start of January 2026.

Data from crypto analytics platform Token Terminal shows the sector has grown 53% in less than six weeks. This makes tokenized commodities the fastest-growing vertical in the real-world asset tokenization market.

Two gold-backed tokens control nearly the entire market. Tether Gold (XAUt) holds a market cap of $3.6 billion after increasing 51.6% in the past month. PAX Gold from Paxos reached $2.3 billion with a 33.2% increase over the same period.

The tokenized commodities sector has now grown 360% year-over-year. This growth rate exceeds both tokenized stocks and tokenized funds during the same timeframe.

Tokenized stocks currently hold a market cap of $538 million. The tokenized funds market leads all sectors with $17.2 billion in total value. The commodities market now represents just over one-third the size of the funds market.

Major Investment Expands Market Access

Tether announced a $150 million investment in precious metals platform Gold.com on Thursday. The deal aims to broaden access to tokenized gold products for mainstream investors.

The stablecoin issuer plans to integrate its XAUt token into Gold.com’s platform. Tether is also exploring options to let customers buy physical gold using its USDT stablecoin.

Each Tether Gold token represents ownership of one fine troy ounce of gold. The gold is stored in London Good Delivery bars in secure vaults.

PAX Gold operates on a similar model. Each token equals one fine troy ounce from a 400-ounce London Good Delivery gold bar.

Physical Gold Prices Hit Record Levels

The surge in tokenized gold products comes as physical gold prices have rallied sharply. Gold’s spot price increased more than 80% over the past year.

The precious metal hit a new all-time high of $5,600 on January 29. A minor pullback brought prices down to $4,700 earlier this month. Gold has since recovered to $5,050 at the time of writing.

Bitcoin has followed a different path during this period. The cryptocurrency fell 52.4% from its early October high of $126,080.

Bitcoin dropped to about $60,000 on Friday before rebounding to $69,050. The crypto market has been in a slump since October 10 when a crash triggered $19 billion in liquidations.

Strike CEO Jack Mallers said Bitcoin is still treated like a software stock. This happens despite Bitcoin having characteristics similar to hard money like gold.

Digital Gold Narrative Under Pressure

Crypto asset manager Grayscale commented on Bitcoin’s recent price action. The firm said Bitcoin’s narrative as “digital gold” has been tested by recent market movements.

Grayscale noted that Bitcoin’s price behavior increasingly resembles a high-risk growth asset. This contrasts with traditional safe-haven assets like physical gold.

The divergence between gold and Bitcoin prices has drawn attention from market analysts. Gold has maintained its role as a safe-haven during economic uncertainty.

Investors appear to be moving capital into tokenized gold products. These products offer the security of physical gold with the convenience of blockchain technology.

The tokenized commodities market provides investors with fractional ownership of physical assets. Users can buy and sell tokens 24/7 without handling physical gold bars.

Blockchain technology offers transparent proof of ownership through immutable ledgers. This reduces counterparty risk compared to traditional commodity investment methods.

The current market structure shows tokenized gold products meeting demand for accessible safe-haven assets. Trading occurs on blockchain networks with lower fees than traditional commodity exchanges.

The post Tether Gold and PAX Gold Dominate as Tokenized Commodities Hit $6.1 Billion appeared first on CoinCentral.