Tokenized Gold Sees Surge in Demand Amid Inflation Fears

The tokenized gold market saw significant demand in August as traders sought out inflation hedges and speculative assets. Gold prices rose to around $4,600 before slipping to about $4,480, but trading interest remained strong.

Tether's gold-linked token XAUT traded at $4,474.72 on Thursday, with a valuation of $3.15 billion as of September. The token's trading volume held near 2026 peak levels, and additional issuance continued over the past three months.

XAUT was used as collateral in lending markets and saw increased trading activity on decentralized exchanges. On Uniswap V3, about $2.39 million worth of XAUT was traded, with PAXG being another widely traded gold-linked token in decentralized markets.