Gold-Backed Tokens Surge as Central Bank Demand Wanes
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Digital gold products are capturing market attention as traditional buyers retreat. Gold-backed cryptocurrency tokens saw $80 million in net issuance last month—the highest in three years—according to rwa.xyz data. The sector’s market cap rose 6% to $1.43 billion, while transfer volume jumped 77% to $1.27 billion, signaling renewed investor interest.
Global gold demand reached 1,206 tonnes in Q1 2025, a 1% annual increase and the strongest first-quarter performance since 2016. Yet central bank purchases declined sharply to 244 tonnes from 365 tonnes in Q4 2024, creating space for crypto alternatives to gain traction.
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