As international spot gold prices continue to hit record highs, tokenized gold, which can be traded in small amounts and 24 hours a day, is rapidly emerging as a new investment alternative. This structure, which combines the stability of physical gold with the transparency of blockchain, is rapidly attracting demand from global investors.
According to CoinGecko on the 5th, the global market capitalization of Tether Gold (XAUT), the largest tokenized gold by market capitalization, has increased by more than 3.5 times over the past year. During the same period, the price has risen by approximately 65%, reaching a new all-time high of $4,531 on the 28th of last month.
Tether Gold is currently the most widely traded tokenized gold globally. PAX Gold (PAXG) and Kinesis Gold (KAU), the second and third largest cryptocurrencies by market capitalization, have also benefited from the gold price rally, rising 65% and 64%, respectively, over the past year.
The pace of market capitalization growth is also rapid. Tether Gold's global market capitalization reached $2.27614 billion, up 251.85% year-on-year. In particular, tokenized gold saw a significant inflow of funds in August and October of last year, with market capitalization surging 52% and 39% in a single day, respectively. The global tokenized gold market size exceeded $4.2 billion (approximately KRW 6.2 trillion) as of last month.
Tokenized gold is a physically linked asset (RWA) token issued on a blockchain, representing gold, a representative safe-haven asset. In the case of Tether Gold, its value is linked 1:1 to the value of London Bullion Market Association (LBMA) certified gold bars. Investors can directly verify ownership information, such as the bar's serial number, purity, and weight, through the blockchain. This method combines the reliability of physical gold with the transparency of blockchain.
The recent surge in interest in tokenized gold is driven by the surge in gold prices. Indeed, the surge in Tether Gold's market capitalization in October of last year coincided with the international spot gold price reaching a record high of $4,100 per ounce. Last month, the spot gold price rose approximately 70% compared to the beginning of the year, surpassing $4,500 per ounce for the first time ever.
Another strength of tokenized gold is its superior investment accessibility. Unlike physical gold or gold exchange-traded funds (ETFs), tokenized gold allows for small investments and 24-hour trading. The relative ease of liquidation, with trading possible with just a few clicks on a virtual asset exchange, is also attracting investor interest.
In line with this trend, domestic exchanges are accelerating their listing of tokenized gold. Upbit and Bithumb listed Tether Gold on the 1st. Coinone has supported Tether Gold trading since October of last year and has been offering related events.
Currently, Tether Gold is trading at 6,355,000 won on Upbit, but investors can invest in gold in increments of just 10,000 won. This significantly lowers the barrier to entry compared to traditional gold investments.
Building on this appeal, the RWA market grew rapidly even during last year's virtual asset downturn. As of the end of last month, RWA's total value locked (TVL) reached approximately $17 billion, a significant increase from the previous year (approximately $12 billion). This figure surpasses the TVL of decentralized exchanges (DEXs), demonstrating RWA's position as a key player in the Web3 market.
The industry predicts that the RWA ecosystem, including tokenized gold, will expand further next year as traditional financial institutions begin to enter the RWA market in earnest. Global investment firm Canter Fitzgerald analyzed that the RWA tokenization and DEX sectors are growing in tandem with the influx of institutional investors. Prestige Research, a virtual asset analysis firm, also recently forecasted in a report that the tokenization market size will approach $490 billion this year.
