Gold, silver all-time highs drive market cap surge in tokenized metals-amtomessage

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2026-01-14

Gold, silver all-time highs drive market cap surge in tokenized metals

Gold (GC=F) and silver ‘s (SI=F) monster rally to all-time highs is spilling over into the digital asset world.

As bullion topped $4,600 per troy ounce on Tuesday, the combined value of the top tokenized gold tokens has surged to a record, topping $4 billion today, up from roughly $1 billion in January 2025.

Leading tokens in the sector include Tether’s XAUT (XAUT-USD) , Pax gold (PAXG-USD) and Matrixdock gold (XAUM-USD).

Tokenized gold leverages blockchain technology, with issuers guaranteeing that each token represents physical metal held in secure custody and tracks its spot price.

It’s not just the largest tokens seeing a spike in interest.

Crypto exchange Bitget recently reported a more than 4,900% surge in two-week trading volume for IAUon (IAUON-USD), the tokenized version of the iShares Gold Trust ETF, compared with the previous two-week period. Meanwhile silver-linked SLVon (SLVon-USD), recorded a more than 3,700% increase over the same timeframe as prices of the physical metal have risen above $84 per troy ounce.

“What we’re seeing with tokenized gold right now is active risk rotation, with traders using it as a liquid macro hedge instead of a long-term, inactive holding. In this way, tokenized gold starts to be used in much the same way investors view physical gold,” said Gracy Chen, CEO of Bitget.

Commodities are among the growing list of real world assets going through a tokenization boom, fueled a surge in stablecoins, or digital tokens pegged to the US dollar.

The sharp rise highlights how macro-driven flows in the metals rally this year are increasingly translating into on-chain equity activity,

“It’s really an alternative way that people can hold gold if they prefer to hold it in a [digital] wallet,” WisdomTree head of digital assets Will Peck told Yahoo Finance in a recent interview. “They can trade it 24/7 around the clock, [with] peer-to-peer transferability.”

Another benefit is the potential use as collateral for loans to produce yields.

“Blockchain technology allows physical gold to be used more like a modern financial asset — one that can earn rewards while still tracking the price of gold,” T.K. Kwon, co-founder and CEO of trading platform Theo told Yahoo Finance, on Tuesday.

“For everyday investors, that’s a meaningful change: instead of paying fees to hold gold, the asset itself pays the holder returns,’ he added.