PAXG Surpasses $2B Market Cap as Tokenized Gold Demand Surges

PAX Gold (PAXG) has grown to a $2B market cap by enabling investors to own and trade verified gold-backed tokens on the Ethereum blockchain according to market analysis. Tokenized gold trading volumes exceeded those of most major gold ETFs in 2025, driven by gold's strong performance and investor demand for accessible, fractional ownership options as reported. Tokenized gold like PAXG provides a bridge between traditional commodities and the digital economy, offering investors a new way to participate in the gold market with greater flexibility and control according to industry analysis.

PAX Gold (PAXG) tokenizes physical gold, enabling fractional ownership and blockchain-based transfers via Paxos Trust Company. Each token represents one fine troy ounce of gold held in LBMA-certified vaults as detailed in reports. This allows investors to verify the serial number of the corresponding allocated gold bar on Paxos.com according to documentation. The minting process is enforced by Ethereum smart contracts, ensuring new tokens are only created when physical gold is secured and allocated as verified by blockchain data.

In 2025, the tokenized gold market reached $178 billion in trading volume, with $126 billion in the final quarter alone. This surpasses most U.S.-listed ETFs, including SPDR Gold Shares (GLD), which has $165 billion in assets according to financial data. Tokenized gold's market capitalization surged 177% to $4.4 billion in 2025 as reported. This growth is attributed to retail demand as gold tokens allow fractional ownership and no minimum investment according to market analysis.

PAXG's growth reflects increasing demand for tokenized assets with verifiable backing, especially in uncertain market environments according to industry reports. Demand for PAXG surged in 2025 due to DeFi integration, regulatory compliance under NYDFS, and gold's $4,967/ounce price peak in 2026 as documented. Tokenized gold addresses storage and verification challenges of physical bullion, attracting retail and institutional investors with liquidity and transparency according to market research.