Tokenised gold has emerged as one of the clear “hero stories” of the first quarter of 2026, according to Swyftx.
While the broader crypto market endured another weak quarter, demand for gold-backed tokens moved in the opposite direction, as outlined in the exchange’s end-of-quarter industry report.
“Tokenised gold is no longer a niche exploration of blockchain’s potential; it is becoming an established part of the crypto ecosystem,” the report stated.
“While physical gold markets remain steady, the market cap for its blockchain-based counterparts grew 2.6x faster over the last year, surpassing US$5 billion in Q1 2026.”
Tether Gold (XAUt) led the surge, commanding more than 45 per cent of total market share and recording 40 per cent TVL growth over the first three months of the year.
The report continued, “to hone in on adoption further, we can look past gold’s price movements and focus purely on circulating supply – a raw measure of investor acquisition. In Q1 2025, about 12 months ago, there was approximately 246k XAUt in circulation. Fast-forward to the time of writing, and that figure has more than doubled to over 550k.”
Swyftx said the spike in XAUt adoption reflects a broader shift, with a growing number of traders across both TradFi and DeFi turning to tokenised assets for 24/7 exposure to commodities – something historically constrained by market trading hours.
“The utility of decentralised markets may continue appealing to some traditional investors, particularly if tokenised commodities develop within clearer regulatory settings over time.”
The trend is not confined to offshore markets, with strong uptake evident in Australia.
“Since its listing on Swyftx in February, XAUt has become a top 10 traded asset by volume within its first two months. Tether Gold (XAUt) trading volume has significantly outpaced its relative market cap in the first quarter of 2026.”
Since its February launch, XAUt is now the seventh-most traded asset on the platform.
Swyftx said trading behaviour among Australians is evolving, with tokenised commodities and equities accounting for a growing share of activity.
“This has already started to take shape via Hyperliquid’s Q1 trading increase, particularly in tokenised precious metals and oil. Swyftx users are increasingly rotating risk-on’ assets (like BTC or alts) directly into XAUt. This allows them to stay within the blockchain ecosystem, maintaining liquidity while gaining exposure to a hard asset that broke through 53 new all-time highs in 2025.”
While USDT volumes still dominate, the data suggests XAUt is gaining traction as an alternative “dry powder” position for some users.
Crypto broker Stormrake said Pax Gold (PAXG) remains a popular tokenised version of the precious metal, describing it as “a digital asset backed 100 per cent by physical gold reserves secured in Brinks vaults in London. It tracks the spot gold price on a near 1:1 basis, but with the added benefit of being liquid and available to trade 24/7.”
When comparing tokenised gold to ETFs or physical bullion, Stormrake argues PAXG offers a hybrid solution – combining ETF-like price exposure with the sovereignty of physical ownership, while removing many of the structural inefficiencies of both.
“As adoption continues to grow, the value proposition becomes increasingly clear. We have produced a number of reports outlining how PAXG can complement a Bitcoin allocation, as the two assets tend to perform in opposing market environments. For investors seeking to capture upside across varying conditions or reduce overall portfolio volatility, PAXG can serve as a strategic counterbalance”
Stormrake added that PAXG continues to hold above key moving averages, signalling a constructive outlook for bulls attempting to regain momentum.
“Its retest of $5,000 will depend on how it acts now and if it can hold above these levels.”
