Tokenized gold has experienced a significant increase in demand, with trading volumes reaching $3 billion as spot gold prices hit record highs. Blockchain analytics firm Lookonchain reported that two major investors purchased over $30 million worth of Tether Gold (XAUt) within a week. Alex Tapscott, CEO of CMCC Global Capital Markets, highlighted that gold-backed tokens are the fastest-growing segment in the tokenized asset market, which Galaxy Digital predicts will expand to $1.9 trillion in five years. These tokens, such as Tether Gold (XAUt) and PAX Gold (PAXG), are backed by audited gold reserves and offer benefits like 24/7 trading and instant settlement. Despite their growth, challenges such as custodial trust and liquidity persist. Illia Otychenko of CEX.IO emphasized the role of transparency, noting that Tether's Q2 report confirming 7.66 tons of gold backing XAUt contributed to a surge in trading activity.