Tokenized Gold Explained: PAXG, XAUT and How Gold Tokens Work
Tokenized gold is gold you can hold in a crypto wallet. Each token is backed by a fixed amount of physical gold, usually one fine troy ounce, stored in a professional vault. The token’s price follows the gold price, and it can be sent, traded and used as collateral like any other token.
How gold tokens work
- The issuer buys gold bars and stores them with a custodian. The largest issuers use London Good Delivery bars, the standard for the wholesale gold market.
- Tokens are minted against the gold, one token per ounce (or per gram, for some issuers).
- The issuer publishes attestations showing the gold held matches the tokens in circulation. Some publish lists of the specific bars backing the tokens.
- Holders can redeem with the issuer for gold or cash, subject to KYC, minimums and fees, or simply sell the token on an exchange.
PAXG vs XAUT
The two largest gold tokens look similar but differ in the details:
| PAX Gold (PAXG) | Tether Gold (XAUT) | |
|---|---|---|
| Issuer | Paxos Trust Company | Tether |
| Backing | 1 fine troy ounce per token | 1 troy ounce per token |
| Vaults | London | Switzerland |
| Regulator | New York State Department of Financial Services | No US regulator |
For a side-by-side with live values, see PAXG vs XAUT.
Why hold gold as a token
- Small amounts: you can own a fraction of an ounce without paying for storage or insurance yourself.
- 24/7 trading: tokens trade around the clock on crypto exchanges.
- Collateral: some lending protocols and exchanges accept gold tokens as collateral.
- Portability: moving gold between wallets takes minutes, while moving physical gold takes armored trucks.
Risks
- Issuer and custody risk: your claim depends on the issuer and its custodian. Read attestations and check who audits them.
- Redemption limits: physical redemption has minimums and fees, so many holders rely on market liquidity instead.
- Price risk: the token is exactly as volatile as gold.
Current figures
The live table below ranks gold tokens by value. See the tokenized gold category for every token, including silver and other metals under commodities.
Largest tokenized gold right now
See allTokenized Gold total: $871M as of Oct 5, 2026.
| # | Asset | Issuer | Value | 7D | 30D |
|---|---|---|---|---|---|
| 1 |  Kinesis GoldKAU | Kinesis | $532M mc | +62.5% | +54.3% |
| 2 |  Tether Gold TokensXAUT0 | - | $110M mc | -2.9% | -10.1% |
| 3 |  Goldfish GoldGGBR | - | $83.9M mc | -2.9% | -5.2% |
| 4 |  Matrixdock GoldXAUM | - | $69.2M mc | -1.3% | -4.3% |
| 5 |  Streamex GLDYGLDY | - | $12.8M mc | - | - |
| 6 |  Gold xStockGLDX | - | $11.8M mc | - | - |
| 7 | - | $6.64M | -3.0% | - | |
| 8 | - | $6.41M | -33.5% | -36.6% | |
| 9 | - | $3.19M | -2.7% | -5.6% | |
| 10 | Paxos | $0 | - | - | |
| 11 | Tether | $0 | - | - |
FAQ
Is tokenized gold backed by real gold?
The main gold tokens are backed by allocated physical gold held by a custodian. PAXG and XAUT each represent one troy ounce of gold on a London Good Delivery bar. Check the issuer's attestation reports to confirm the backing.
What is the difference between PAXG and XAUT?
Both are backed by one troy ounce of gold per token. PAXG is issued by Paxos, a New York-regulated trust company, with gold stored in London. XAUT is issued by Tether with gold stored in Switzerland. They differ in regulator, custody location, chains and redemption terms.
Can I redeem gold tokens for physical gold?
Usually yes, through the issuer, after KYC and subject to minimums and fees. Smaller holders more often sell the token for cash or stablecoins instead.
Assets in this guide
Key terms
More guides
This guide is general information, not investment advice. Check an issuer's own documents before investing.