Market capitalization of tokenized gold exceeds $ 1 billion | coindesk JAPAN

The market capitalization of tokenized gold surpassed $1 billion on April 4, according to CoinGecko data. The price of the underlying gold is nearing an all-time high.

Tokenized gold is a type of stablecoin whose price is tied to gold. Tokens on the blockchain represent ownership of physical gold managed by the issuer. Investing in gold will be possible without the management fees of an ETP (Exchange Traded Fund) or the burden of holding gold bullion.

Typical gold tokens are Pax Gold (PAXG) issued by Paxos Trust Company, a New York-based fintech company, and Tether issued by Tether, which handles the stablecoin Tether (USDT). Gold (Tether Gold: XAUT).

As of this writing, Pax Gold and Tether Gold have market caps of $518 million and $499 million, respectively, according to CoinGecko.

Gold prices have been rising since March on the back of investor fears of bank failures and possible government bailouts. On April 4, it climbed to $2,021 an ounce, just 3% off the all-time high set in August 2020.

Bitcoin (BTC), often referred to as digital gold, rose from $20,000 to near $29,000 as gold surged.

Correlation between bitcoin and gold hit a multi-year high last week, surpassing that between gold and stocks, according to a May 3 report from cryptocurrency market research firm Kaiko.

｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
| Image: Unsplash
｜Original: Tokenized Gold Surpasses $1B in Market Cap as Physical Asset Nears All-Time Price High