Gold Surpasses U.S. Treasuries: Implications for Tokenized Gold Markets
Gold Overtakes US Treasuries: What It Means for Tokenized Gold
Image: Benzinga
Gold has reclaimed its position as the leading asset in global reserves, surpassing U.S. Treasuries according to the European Central Bank's report. This shift, driven by geopolitical tensions and increased central bank demand, has spurred growth in tokenized gold, which offers advantages over physical gold in trading and accessibility.
- 01Gold's share of global official reserves rose to 27% by the end of 2025, compared to 20% the previous year, overtaking U.S. Treasuries at 22%.
- 02Central banks purchased approximately 850 tonnes of gold in 2025, with significant acquisitions from China, Poland, Turkey, and India, driven by geopolitical risks.
- 03Tokenized gold trading volumes reached $90.7 billion in Q1 2026, exceeding total volumes for 2025, highlighting growing institutional interest.
- 04Tokenized gold products like Tether Gold (XAUT) and Paxos Gold (PAXG) dominate the market, accounting for 89.1% of growth in tokenized commodities.
- 05Regulatory clarity remains essential for broader institutional adoption of tokenized gold, which must meet standards of transparency, governance, and auditability.
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According to the European Central Bank's June 2026 report, gold has regained its status as the largest component of global official reserves, surpassing U.S. Treasuries. Gold's share increased to 27% by the end of 2025, up from 20% the previous year, while U.S. Treasuries fell to 22%. This shift is attributed to rising gold prices—up 60% in 2025—and sustained central bank purchases, particularly from countries like China and Poland, in response to geopolitical tensions. The demand for tokenized gold has surged, with trading volumes hitting $90.7 billion in Q1 2026, indicating a strong institutional interest in digital gold assets. Tokenized gold products, such as Tether Gold and Paxos Gold, account for the majority of this growth. These products provide advantages over physical gold, including continuous trading and instant settlement, which are crucial for modern financial operations. However, for tokenized gold to achieve broader acceptance, regulatory clarity and adherence to strict custody and audit standards are necessary.
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The rise of gold in reserve portfolios signals a shift in asset allocation strategies for central banks, influencing global financial markets.
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