Tokenized Gold Supply Surges to $1.5 Billion in 2025 as Investors Seek Flight to Safety

Tokenized gold has emerged as a prominent safe-haven instrument in 2025, with global circulating supply reaching $1.5 billion. This surge reflects investor demand for accessible, tradable, and settlement-efficient exposure to physical gold through blockchain-based tokens. The trend is notable because it comes at a time when Bitcoin appears to be lagging relative to traditional gold prices, prompting portfolio rotations and fresh interest in tokenized precious metals.

The appeal of tokenized gold lies in several structural advantages: 24/7 trading across global venues, faster settlements compared with traditional bullion exchanges, and lower barriers to entry for retail and institutional investors. These attributes have catalyzed inflows into products that fractionalize physical bullion into digitally transferable units. Institutional offerings and regulated on-chain custodial solutions have made it easier for asset managers to allocate to tokenized precious metals without the operational overhead of physical custody.

Market participants cite macroeconomic uncertainty—rising inflation expectations, geopolitical tensions, and uneven central bank policies—as the primary drivers of the recent uptick. As a result, a subset of capital that previously targeted crypto-native risk assets has rotated into tokenized metals, treating them as a hybrid instrument: possessing the digital convenience of crypto and the defensive characteristics of traditional gold. Observers note that the $1.5 billion figure represents not only speculative flows but also strategic allocations by asset managers seeking portfolio diversification.

Notable providers and platforms have contributed to liquidity growth. For example, Company Paxos and Company Tether are frequently mentioned as contributors to product availability and market-making activity in this space. Meanwhile, the broader crypto ecosystem continues to reference Bitcoin as a comparative benchmark; however, the current disconnect between bitcoin price movements and traditional gold has highlighted the potential for tokenized gold to capture flows when investors prefer capital preservation.

Risks remain. Tokenized gold depends on trusted custody, reliable audits, and transparent redemption processes. Counterparty risk—especially in less-regulated jurisdictions—or insufficient proof of reserves can undermine confidence. Liquidity remains uneven across trading venues, which can amplify spreads and slippage during stressed market conditions. Regulatory clarity is improving in some markets, but cross-border compliance and KYC/AML requirements continue to shape who can participate and how products are structured.

For traders and analysts, the implications are twofold: first, tokenized gold acts as a new liquidity pool and potential source of price support for physical gold markets; second, it represents an alternative destination for capital that might otherwise chase high-volatility crypto assets. Technical traders should watch for correlations between tokenized gold volume spikes and moves in spot gold and bitcoin. Price support levels for tokenized gold products are likely to be influenced by on-chain supply metrics, custodial reserve reports, and macro headlines.

Outlook: If the macro backdrop of uncertainty persists, tokenized gold could continue to grow as a category and attract additional institutional infrastructure, narrowing spreads and improving settlement finality. Conversely, a rapid normalization of risk sentiment or a resurgence in crypto risk appetite—driven by speculative rallies in major tokens—could slow inflows. Investors and market participants should focus on custody transparency, regulatory compliance, and the credibility of reserve attestations when evaluating tokenized gold offerings.

Bottom line: The $1.5 billion milestone in 2025 signals meaningful adoption of tokenized precious metals as a flight-to-safety vehicle. While opportunities for diversification and improved market access are clear, due diligence on custody, regulation, and liquidity remains essential.