Tokenized Gold Reaches Record Trading Volume and Overtakes Second-Largest Gold ETF Amid Renewed U.S.-China Tensions Illya Otychenko, October 16, 2025
Daily trading volume of tokenized gold hit $1 billion for the first time amid U.S.-China trade war concerns. The cumulative volume of tokenized gold since the U.S. government shutdown surpassed $10 billion, overtaking iShares Gold Trust. XAUT took a central stage in this rally, accounting for nearly 37% of tokenized gold volume in October. Tokenized gold hit a major milestone this week, with daily trading volume exceeding $1 billion for the first time. The surge came amid renewed macroeconomic uncertainty from the U.S. government shutdown and escalating U.S.-China trade tension, which drove investors toward safe-haven assets.
Since the start of the shutdown on October 1, gold prices have rallied nearly 10%, fueling growth in tokenized gold markets. Over this period, cumulative tokenized gold trading volume exceeded $10 billion, already surpassing activity seen throughout the entire Q1 2025. For context, the sector reached a record $26.7 billion in trading volume in Q3, meaning it’s now well on track to break that milestone in Q4 if current momentum persists.
Tether Gold (XAUT) led the rally, accounting for nearly 37% of tokenized gold volume in October, up from 27% in Q3 2025, while its holder count grew over 12%, outpacing PAXG.
The heightened activity in October also helped tokenized gold overtake Blackrock’s iShares Gold Trust (IAU), the world’s second-largest gold ETF, which recorded $9.8 billion in volume since the shutdown. This milestone comes on the back of explosive growth in recent quarters: tokenized gold saw a 234% increase in trading volume in Q2 2025, ranking fourth behind GLDM, then surged 43% in Q3, outpacing GLDM and now overtaking IAU.
Today, only SPDR Gold Shares (GLD), with over $80 billion in trading volume, remains ahead, underscoring how quickly tokenized gold is closing the gap with traditional ETFs and establishing itself as a mainstream investment vehicle.
Notably, all this trading activity is taking place from a relatively small market base. While GLD and IAU have market caps of nearly $125 billion and $60 billion respectively, tokenized gold’s market cap sits just above $3 billion. Despite its smaller size, tokenized gold is trading at a velocity far higher than major ETFs and even altcoins. Current volume-to-market-cap ratios show tokenized gold at 34%, compared with GLD at 5.6% and IAU at 1.5%, highlighting how actively gold-backed cryptocurrencies are bought and sold relative to its size.
This sharp rise builds on trends seen in Q2 2025, when tokenized gold broke from traditional ETF patterns. The increase reflects how tokenized gold is used not only as a store of value but as an active utility asset within the crypto ecosystem. Investors appear drawn by its accessibility and ability to respond quickly to macro shocks, including tariff uncertainty and geopolitical tensions.
Final Thoughts Tokenized gold is rapidly carving out its place in the broader gold investment landscape. While traditional investment vehicles like GLD continue to dominate in size and recognition, tokenized gold is building a parallel, on-chain market driven by retail and crypto-native investors. With macroeconomic uncertainty fueling demand, the tokenized gold sector could be poised to challenge the traditional hierarchy sooner than many may expect.
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