Paxos Gold Makes It Rain: Crypto Fans Swap for Real Gold

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Markets

What to know:

  • Paxos Gold (PAXG) posted a record inflow of $248 million in January, boosting its market cap to over $2.2 billion.
  • The tokenized gold market crossed $5.5B as investors seek stable value amid crypto stagnation.
  • The moves occurred as gold prices surged to new records above $5,300.

Crypto investors are flocking to tokenized gold as the crypto markets wallow in their own version of “meh,” pushing Paxos’ gold token to a January record. It’s basically diversification, but shinier and with fewer keyboard clacks.

Paxos Gold (PAXG), backed by physical gold held in LBMA vaults in London, raked in more than $248 million of new capital through January, DefiLlama data shows. That lifted PAXG’s market capitalization to over $2.2 billion, which is basically the adult version of “look at me, I’ve got a shiny rock.”

The inflows come as gold enjoys a blistering rally. The precious metal crossed $5,300 per ounce on Wednesday, rising 22% in January and more than 90% in the past year. Bitcoin, meanwhile, has slid over 10% in a year and the wider crypto market has sunk-so maybe it’s gold’s turn to be the adult in the room.

This shift hints that some crypto investors are seeking protection in an uncertain macro environment, with tokenized gold offering transferability and divisibility that traditional bars can’t brag about, said James Harris, CEO of crypto yield platform Tesseract Group.

“Tokenized gold has expanded gold’s utility-especially around transferability and divisibility-while bitcoin continues to behave more like a risk asset in choppy macro times,” he said.

Tokens like PAXG and XAUT offer fractional ownership of physical gold, with blockchain-based transfers and crypto wallet compatibility. For investors, it’s a way to own a centuries-old store of value without renting a vault the size of a small airplane hangar.

The total market for tokenized gold has now topped $5.5 billion, according to CoinGecko, marking an all-time high as inflows and gold prices push the sector to new heights.

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2026-01-28 23:16