- Tokenized gold and traditional gold ETFs are outperforming Bitcoin in 2025 as investors seek stability amid global economic uncertainty.
- Backed by physical bullion, digital assets like PAXG and XAUT offer a secure, flexible alternative in shaky markets.
In a volatile economic climate, investors are finding refuge in a surprising fusion—gold with a digital twist.
As global markets remain jittery, traditional safe havens are making a major comeback—and gold is stealing the spotlight. But this time, it’s not just shiny bars in a vault. Tokenized gold, digital assets like Paxos Gold (PAXG) and Tether Gold (XAUT), is gaining serious traction, outpacing even crypto giants like Bitcoin in 2025.
While Bitcoin has slipped more than 11% this year, tokenized gold has surged over 23%, tracking physical gold’s strong performance. These digital tokens are backed by real-world bullion, combining the trust of tangible assets with the agility of blockchain tech. Investors can buy, sell, and transfer their gold instantly—without worrying about physical storage or security.
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This shift isn’t just happening in the digital realm. Traditional gold ETFs have also seen a record-breaking quarter. According to the World Gold Council, ETFs saw inflows of 226.5 tonnes in Q1 2025, the highest in three years. Nearly 60% of that came from North American investors, signaling a significant pivot toward safer assets amid geopolitical tensions.
One major driver? Renewed economic friction between the U.S. and China, including fresh tariffs introduced by the Trump administration, which rattled markets and hit crypto especially hard. But gold—both physical and digital—held firm.
Meanwhile, minting of tokenized gold is booming. Over $42.7 million worth of PAXG and XAUT was minted in Q1 alone, pushing the total market value of gold-backed tokens close to $1.4 billion, according to RWA.xyz.
The appeal is clear: tokenized gold offers stability without sacrificing the flexibility and speed that crypto investors crave. As uncertainty looms, this hybrid of old-school value and new-age tech is emerging as the real winner.
Bottom line: Gold hasn’t just gone digital—it’s gone mainstream. And in 2025, it’s beating Bitcoin at its own game.
