- Tokenized gold reached record trading volume in the second quarter of 2025, surpassing $19 billion.
- Tokenized gold outperformed major gold ETFs in volume for the fourth time in a row, significantly narrowing the gap in trading activity.
- Most of the momentum for tokenized gold has been driven by retail trading, reflecting growing demand for exposure to affordable gold.
Tokenized gold hit a new all-time high in trading volume in the second quarter of 2025, surpassing the $19 billion mark for the first time, amid tariff uncertainty and tensions in the Middle East. This quarter marked a clear acceleration of a trend that has been quietly building: Tokenized gold is rapidly gaining ground against traditional gold investment vehicles, and is well positioned to overtake the second-largest gold ETF by volume over the next three months.
Tokenized gold has outperformed mid-tier gold ETFs
Tokenized gold markets have seen explosive growth over the past 15 months. from alone 2.4 billion dollars in the second quarter of 2024, quarterly volume soared 8 times to $19.2 billion for the second quarter of 2025. This growth far outpaced most major gold ETFs, including SPDR Gold Shares (GLD) and iShares Gold Trust (IAU), whose volumes roughly doubled over the same period. This superior performance suggests a reassignment of activity from legacy ETFs to on-chain gold products.
The biggest story is in the mid-tier ETFs. Despite relatively similar size with some mid-tier ETFs, tokenized gold has been significantly more reactive to tariffs and other geopolitical events in 2025. As a result, while tokenized gold has seen an accelerated increase in trading volume, Mid-tier gold ETFs have increasingly fallen behind their larger counterparts and tokenized competitors. suggesting that they have been the most affected for this tokenized gold expansion.
Due to rapid growth in 2025, tokenized gold now ranked fourth in trading volume among the main gold investment products, surpassing SGOL, AAAU, IAUM and OUNZ. Forks on track to surpass IAU and GLDM already in the third quarter of 2025 if the current pace is maintained.
Tokenized gold now aims to rival GLD and IAU
While GLD continues to dominate with $232 billion in Q2 volume, the gap is rapidly narrowing. Tokenized gold volume is now only 12x smaller than GLD, below 45x a year ago. In turn, the difference between the IAU and the volume of tokenized gold has already fallen from a 5x gap in mid-2024 to just 2x today.
Since Q3 2024, tokenized gold has consistently outperformed both GLD and IAU in quarterly volume growth. For example, in the second quarter of 2025, the volume of tokenized gold increased 253% compared to the previous quarter, compared to 75% for GLD and 71% for the UAI. This suggests that Tokenized gold is not simply following the broader trend of renewed interest in gold, it is outperforming it..
Retail investors are driving change
This increase in the volume of tokenized gold is not only about the structure of the market, but also about who is buying. While ETFs remain the preferred choice for institutions, retail and crypto-native investors are increasingly embracing tokenized gold. The clearest sign of that change comes from Kinesis Gold (KAU), a gold token denominated in 1 gram of gold instead of 1 ounce. KAU volume skyrocketed from $40 million in Q2 2024 to 5.5 billion dollars in the second quarter of 2025, showing great appeal among retailers.
Other major tokenized gold tokens are also experiencing a user boom. the number of PAXG holders grew by 25% in 2025, while XAUT Holders Up 151%suggesting a wave of new entrants entering the market. Rather than large institutional inflows, this growth appears to reflect grassroots adoptionparticularly in regions where access to traditional gold ETFs is limited.
Utility, not just a store of value
Despite Record Trading Activity, Tokenized Gold Still lags behind in market capitalization. In 2025, GLD’s total market capitalization increased by 36%, while tokenized gold increased by 29%. This gap suggests that tokenized gold is not yet considered a long-term store of value in the same way as ETFs.
Instead, it is increasingly functioning as a liquid utility asset within the chain economy. Tokenized gold is frequently used in DeFi protocols and collateralized lending, activities where speed matters more than static holdings.
Macro tailwinds could push tokenized gold over the edge
This year’s geopolitical shocks fueled interest in both traditional gold offerings and tokenized gold. However, if macroeconomic conditions continue to deteriorate, tokenized gold could gain even more traction.
Donald Trump recently extended the deadline for US tariffs from July 9 to August 1, signaling that the story is far from over. If tensions rise, investors are likely to increase their exposure to gold. Given the growing awareness and growing infrastructure supporting tokenized gold, this next macro peak could be the time when it can surpasses IAU in trading volume.
Final thoughts
Tokenized gold is gradually becoming a core component of the modern gold investment ecosystem. ETFs like GLD still define the top of the market in both assets and holdings. But the rise of tokenized gold shows that retail users and crypto experts are creating a parallel on-chain gold economy. With shrinking volume gaps, explosive adoption, and global macro catalysts in play, change may come sooner than expected..
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