Commodity-Backed Cryptocurrencies Reach 5-Year Minting High Amid Gold Trading Turmoil

Commodity-backed cryptocurrencies, particularly those backed by gold, have experienced a significant surge in issuance this week, with minting volumes reaching their highest levels in at least five years. This increase follows gold futures trading above a $3,500 all-time high, after the Swiss Precious Metals Association indicated that the U.S.’s 39% tariffs on Switzerland could have a “negative impact” on the international flow of physical gold. Although both gold spot and futures prices fell after an initial spike—triggered by a White House official’s statement clarifying that gold bar imports should not be subject to tariffs—this did not prevent the minting of gold-backed tokens. The warning led to cryptocurrencies like Tether Gold and Paxos Gold (PAXG) briefly surpassing $3,390 before retreating. According to RWA.xyz data, minting volumes reached $439 million over the week, more than double the previous record of $195 million set in 2021. These tokens are backed by physical reserves held in vaults, offering investors exposure to the precious metal while enabling instantaneous on-chain transfers without crossing borders. Switzerland, which refines a significant portion of the world’s gold despite lacking its own mines, exported over $61 billion worth of gold to the U.S. in the past year. This situation has led to political backlash in Switzerland, with some lawmakers urging the gold sector to bear a portion of the economic repercussions. The precious metal constitutes over a quarter of Switzerland’s exports, according to Swiss National Bank data.