Trading volume for tokenized gold (XAU) contracts on centralized exchanges jumped 124.91% to $1.669 billion over the last 24 hours, even as the underlying asset’s price fell 1.71% to $4,634.97. The spike in activity suggests a growing use of digital gold as a hedging instrument against broader market volatility.
"Historically, gold has been a store of value and not a medium of exchange. This changes that narrative," Paolo Ardoino, CEO of Tether, said in a recent announcement regarding a new partnership. The move to integrate tokenized gold into global payment systems reflects a broader strategy to expand its utility beyond simple trading and speculation.
Data from crypto market aggregators shows the trading activity was highly concentrated on a few major platforms. Binance led the market with $959 million in volume, followed by Bitget at $273 million and OKX with $143 million. Combined, the top three exchanges accounted for approximately 83% of the total 24-hour volume, indicating significant liquidity concentration.
The surge in trading coincides with efforts to embed tokenized gold into everyday finance. Tether, the issuer of the market-leading XAU₮ token, recently collaborated with neobanking platform Fasset to launch a gold-backed Visa card. This initiative allows users to spend their tokenized gold holdings at any merchant that accepts Visa, directly connecting the digital asset to real-world commerce and potentially driving wider adoption, particularly in emerging markets where Fasset has a strong presence.
The collaboration between Tether and Fasset marks a significant step in transforming tokenized gold from a niche trading product into a practical financial tool. The new Visa card will allow users to earn cashback in XAU₮ and automatically invest spare change from purchases into the gold-backed token.
"For over a thousand years, gold has been the most trusted store of wealth across our markets. We're bringing it into the digital age," said Mohammad Raafi Hossain, CEO and Co-Founder of Fasset. The partnership aims to leverage Fasset's distribution network in Asia and Africa to make Tether Gold the most widely held digital gold token in those regions. This strategic push could further increase liquidity and trading interest in XAU contracts on exchanges like Binance and Bitget as the asset's utility grows.
This article is for informational purposes only and does not constitute investment advice.
