Gold-backed cryptocurrencies have spiked in value amid the global trade war unleashed by US President Donald Trump’s April 2 tariffs.

Tether Gold (XAUT) and Paxos Gold (PAXG) reached all-time highs on April 22, with Tether Gold touching $3,529 and Paxos Gold recording a peak of $3,520, according to data from CoinMarketCap. Two other gold-backed cryptocurrencies — Quorium (QGOLD) and Kinesis Gold (KAU) — have seen rises of 8.5% and 7.6%, respectively, in the past 30 days. All four tokens are up 40% or more in the past 12 months, CoinGecko data shows.

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According to a report by Tether, the increased demand for XAUT is due to macroeconomic factors, such as escalating global economic uncertainty, geopolitical conflicts, and a rising demand for inflation-resistant assets.

Since US President Trump’s renewed trade war, gold has increased significantly in value. On April 2, Trump’s “Liberation Day,” when the tariffs were announced, the price of one ounce of gold was $3,115. At the time of this writing, on April 28, the ounce price is at $3,335, representing a 7% jump in less than 30 days.

Gold price in USD over one month. Source: GoldPrice.org

Gold, often seen as a hedge against inflation, usually attracts investors during times of economic uncertainty. In similar lines, Bitcoin (BTC), often referred to as “digital gold,” has soared 14% during the same period.

Growing RWA market

Real-world asset (RWA) tokenization — products that bring assets like precious metals, bonds, and real estate onto the blockchain — is a growing market. According to RWA.xyz, the tokenized RWA market capitalization (excluding stablecoins) stands at $21.6 billion, up 8.6% over the past 30 days.

Tether Gold and Paxos Gold are examples of RWA tokenization. Each coin in both products is reportedly backed by one troy ounce of actual gold. Tether is said to store its gold reserves in Switzerland, while Paxos keeps its gold in London. Tokenized gold has been a strong crypto use case in 2025, reaching a two-year high in trading volume on April 10.

Tokenizing gold has a few advantages over more common investment instruments that provide exposure to gold. For instance, settlements through these funds are instant, enabling quick trading. In addition, some tokenized gold tokens can be used to purchase goods and services, while traditional instruments can usually be redeemed only for fiat currency.

Related: Tether launches gold-backed, US dollar stablecoin Alloy