Gold has reclaimed investor attention amid global trade tensions and inflation concerns. In 2025, spot prices surged to record highs, driving demand for tokenized gold—digital assets backed by physical bullion. These cryptocurrencies merge gold's stability with blockchain's efficiency, offering fractional ownership, liquidity, and regulatory compliance. Below, we rank the top projects based on market capitalization, transparency, and utility.
Top 5 Gold-Backed Cryptocurrencies
1. Pax Gold (PAXG)
Issuer: Paxos Trust Company
Market Cap: ~$784M
License: NYDFS-regulated
Key Features:
- Each PAXG token = 1 troy ounce of LBMA-certified gold.
- Audited reserves, redeemable for physical gold.
- Available on Ethereum, Solana, and BNB Smart Chain.
👉 Explore PAXG’s liquidity advantages
2. Tether Gold (XAUT)
Issuer: TG Commodities Ltd
Market Cap: ~$833M
License: BVI-registered
Key Features:
- Backed by Swiss-vaulted LBMA gold.
- ERC-20 token with fractional trading support.
- Integrated with Tether’s ecosystem.
3. GoldPro Token (GPRO)
Issuer: IPMB
Market Cap: ~$122M
License: BVI-based
Key Features:
- 1 GPRO = 1 gram of 22-carat gold.
- Polygon-based with NFT staking rewards.
- Axelar-enabled multichain interoperability.
4. Comtech Gold (CGO)
Issuer: ComTech FZCO
Market Cap: ~$15M
License: Dubai (DAFZA)
Key Features:
- Shariah-compliant, XDC Network-based.
- Redeemable for UAE-vaulted gold.
- Low transaction fees.
5. VNX Gold (VNXAU)
Issuer: VNX Commodities AG
Market Cap: ~$2.5M
License: Liechtenstein (FMA)
Key Features:
- LBMA gold stored in EU-regulated vaults.
- Multichain (Ethereum, Solana, Tezos).
- Full audit transparency.
Tokenized Gold Explained
What Is Tokenized Gold?
Tokenized gold represents physical bullion as blockchain tokens, enabling:
- Fractional ownership (e.g., 0.01 oz).
- Instant global transfers.
- DeFi integration (staking, lending).
Projects like PAXG use Chainlink oracles to verify reserves, ensuring 1:1 backing.
How Does Tokenization Work?
- Custody: Gold bars stored in audited vaults (e.g., Switzerland).
- Minting: Smart contracts issue tokens tied to specific bars.
- Audits: Independent firms verify reserves quarterly.
- Redemption: Tokens convertible to physical gold or fiat.
FAQs
Is Tokenized Gold Regulated?
- EU: Governed by MiCA (proof of reserves required).
- US: SEC may classify tokens as securities; most issuers operate offshore.
👉 Compare regulatory frameworks
How to Buy Gold-Backed Crypto?
- Sign up on a regulated exchange (e.g., Uphold).
- Deposit funds via bank/card.
- Purchase PAXG, XAUT, or others.
Can You Earn Yield?
Yes, via:
- DeFi pools (15–33% APY on Uniswap).
- Lending platforms (~1.5% APY).
(Risks: impermanent loss, smart contract vulnerabilities.)
Final Thoughts
Tokenized gold bridges traditional finance and crypto but faces adoption hurdles. While projects ensure transparency and liquidity, mainstream use cases—like institutional collateral or payments—remain underdeveloped. For now, it’s a niche yet reliable hedge within digital asset portfolios.
### Keywords:
- Gold-backed cryptocurrencies
- Tokenized gold
- PAXG
- XAUT
- DeFi yield
- LBMA gold
- Crypto regulation
- Precious metals