The market capitalization of gold-backed stablecoins has surged to over $4 billion, nearly tripling from approximately $1.3 billion at the start of 2025. Tether Gold (XAUt) leads the market with a valuation of about $2.2 billion, representing roughly 50% of the market share. Paxos Gold (PAXG) follows with a market cap of approximately $1.5 billion. Together, these two stablecoins account for nearly 90% of the tokenized gold market. Analysts have noted a significant increase in gold prices, which have risen by about 66% this year. Additionally, Tether has been increasing its gold reserves, holding approximately 116 tons as of the end of September.