The market for gold-backed tokens has climbed to new highs, with Tether’s XAUT and Paxos’ PAXG leading inflows as the precious metal trades just below its April record.

According to CoinGecko, the total market capitalization of tokenized gold now stands at $2.57 billion. Both XAUT and PAXG are fully backed by physical bullion stored in vaults, designed to mirror the price of gold on-chain.

XAUT supply jumped by $437 million to reach $1.3 billion in circulation, with Tether minting 129,000 tokens in early August on Ethereum, Etherscan data shows. PAXG also reached an all-time high, swelling to $983 million in market cap on the back of $141.5 million in net inflows since June, per DefiLlama.

Gold itself traded near $3,470—just below the April 22 peak—buoyed by safe-haven demand and a steepening U.S. Treasury yield curve. The rally underscores gold’s enduring role as a defensive asset while highlighting growing investor interest in tokenized representations of the metal.