Tokenized Gold Fuels RWA Boom as On-chain TVL Leaps From $1B to $4B

Tokenized gold has quietly become one of the year’s biggest success stories in decentralized finance, emerging as a primary engine behind the rapid expansion of real-world assets on blockchains. DefiLlama called attention to the trend on X, noting that “Tokenized Gold has been a major driver of RWA growth this year, growing from around $1B in TVL at the start of the year to over $4B now.” The platform’s stacked-area chart makes that surge plain: what began as a relatively small slice of on-chain value has swollen into a leading category within the RWA universe.

The visual tells a clear story. A handful of issuers dominate the landscape, the green band of Paxos and the brown of Tether stand out as the largest contributors, while smaller providers such as MatrixDock and ComTech appear as thin ribbons on top. Growth wasn’t entirely smooth; the chart shows two sharp lifts later in the year, indicating moments when large inflows or new token issuances pushed total value locked sharply higher. But the cumulative trend is unmistakable: demand for blockchain-native representations of physical gold has multiplied several times over in a matter of months.

Why gold? For many investors and institutions, tokenized gold offers a familiar hedge and store of value, but with advantages that appeal in a digital age: 24/7 accessibility, fractional ownership, and the ability to use tokenized metal as collateral or liquidity within DeFi protocols. That mixing of an age-old asset with modern financial plumbing appears to be drawing both retail and institutional appetite. As TVL has climbed, tokenized gold has moved from niche curiosity to a substantive line item on many on-chain balance sheets.

Broader Market Shift

The rise also shows a broader shift in how market participants think about real-world assets on blockchains. Until recently, RWAs were often discussed in abstract terms, tokenized bonds, invoices, or mortgages. Gold is straightforward and familiar, making it an easier first step for asset managers, market makers, and custodians looking to test tokenization at scale. That practical simplicity likely helped accelerate adoption: rather than wrestling with complex legal or operational frameworks tied to other assets, issuers and integrators could focus on minting, custody, and liquidity provisioning around something investors already understood.

There are, of course, questions that come with growth. Custody arrangements, auditability of underlying reserves, redemption mechanics and regulatory oversight all remain critical areas for scrutiny as balances on-chain reach into the billions. Market participants and regulators will be watching whether the industry can scale infrastructure and transparency at the same pace as demand, and whether tokenized gold behaves as reliably in stress conditions as it does in calm markets.

For DeFi platforms, the climb gives engineers and product teams new options. Collateralized lending, token swaps and yield products can now lean on tokenized gold as a deep, liquid input. That opens possibilities for diversified, on-chain products that marry traditional safe-haven assets with DeFi’s programmability, a combination that may appeal particularly to conservative institutional players dipping their toes into crypto.

If the last few months are any guide, tokenized gold won’t be a passing trend. The fourfold growth in TVL this year signals a structural interest in bringing conventional assets onto distributed ledgers. Whether tokenized gold remains the poster child for RWA adoption or merely the vanguard for more complex asset classes will depend on how well the ecosystem addresses custody, compliance and redemption issues. For now, the numbers and the chart from DeFiLlama suggest one clear takeaway: tokenized gold has graduated from experiment to influential market force in a remarkably short time.