Gold-backed cryptocurrency has surged amid global trade uncertainties.

Source: Cointelegraph Original text: "Gold-backed cryptocurrency surges amid global trade uncertainty"

After U.S. President Donald Trump announced tariffs on April 2, the value of gold-backed cryptocurrencies surged.

According to CoinMarketCap, Tether Gold (XAUT) and Paxos Gold (PAXG) reached all-time highs on April 22, with Tether Gold hitting $3,529 and Paxos Gold recording a peak of $3,520. The other two gold-backed cryptocurrencies, Quorium (QGOLD) and Kinesis Gold (KAU), have increased by 8.5% and 7.6% respectively over the past 30 days. Data from CoinGecko indicates that all four tokens have risen by 40% or more over the past 12 months.

According to a report by Tether, the increase in demand for XAUT is due to macroeconomic factors such as heightened global economic uncertainty, geopolitical conflicts, and a rising demand for inflation-resistant assets.

Since U.S. President Trump re-initiated the trade war, the value of gold has risen significantly. On April 2, the "Liberation Day" when Trump announced tariffs, the price of one ounce of gold was $3,115. As of April 28, the current price is $3,335, an increase of 7% in just 30 days.

Gold is often seen as a tool against inflation, typically attracting investors during times of economic uncertainty. Similarly, Bitcoin (BTC) is referred to as "digital gold," having increased by 14% during the same period.

Real-World Asset (RWA) tokenization - products that bring assets like precious metals, bonds, and real estate onto the blockchain - is an expanding market. According to data from RWA.xyz, the market capitalization of tokenized RWAs (excluding stablecoins) is currently $21.6 billion, having risen by 8.6% over the past 30 days.

Tether Gold and Paxos Gold are examples of RWA tokenization. Each token in these two products is claimed to be backed by one ounce of actual gold. Tether's gold reserves are reportedly stored in Switzerland, while Paxos stores gold in London. Tokenized gold became a strong cryptocurrency use case in 2025 and reached a two-year trading volume peak on April 10.

Tokenized gold has several advantages compared to more common gold investment tools. For example, the settlement of these funds is instantaneous, allowing for quick trading. Additionally, some tokenized gold tokens can be used to purchase goods and services, whereas traditional tools typically can only be exchanged for fiat currency.

Related articles: Without RWA tokenization, traditional financial markets will not be able to survive.