The market for gold-backed stablecoins has expanded dramatically this year, with the total market capitalization nearing $4 billion. This represents a near-tripling of value since the beginning of 2025, driven by rising gold prices and strategic moves by leading issuers.
Market concentration is high, with a single token commanding about half of the total supply. Together with the second-largest token, these two issuers control nearly 90% of all tokenized gold holdings. The leader solidified its position through a series of supply expansions throughout the year.
This surge in digital gold parallels a significant rally in the price of the physical metal. Macroeconomic uncertainty, geopolitical tensions, and consistent global demand are cited as key factors driving investors toward gold as a traditional safe-haven asset.
Technically, these stablecoins represent direct claims on physical gold bars held in high-security vaults. They allow for fractional ownership, enabling investors to gain exposure to gold prices through blockchain tokens that can be easily traded on digital asset exchanges.
In a notable development, a prominent stablecoin issuer has accumulated enough physical gold to rank among the world’s largest holders. International Monetary Fund data places this entity ahead of the gold reserves of several sovereign nations, including the US.
The trend underscores a broader convergence of traditional finance and digital assets. By combining the stability of a commodity like gold with the liquidity and transparency of blockchain technology, these products are attracting a growing base of both institutional and retail participants.
