Gold-Backed Cryptos Near $3B Market as Bullion Blasts to Fresh Record Highs

The market for tokenized gold has surged to approximately $2.9 billion as the price of gold set new records, exceeding $3,800 per ounce. The two leading gold-backed tokens, Tether Gold (XAUT) and Paxos Gold (PAXG), reported record monthly trading volumes of over $3.2 billion each in September, with PAXG seeing a notable influx of $40 million. This uptrend in gold prices is attributed to expectations regarding Federal Reserve policies, inflation, and concerns over a possible U.S. government shutdown. Both tokens are backed by physical gold reserves and offer the advantages of blockchain transactions, including continuous trading and immediate transfers. As the value of the underlying gold continues to rise, the market capitalization for these digital assets has also reached unprecedented levels, with XAUT valued around $1.43 billion and PAXG at approximately $1.12 billion. This robust market activity suggests that investor interest in gold-backed cryptocurrencies may persist as macroeconomic conditions remain favorable.

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