Commodity-Backed Cryptocurrencies Reach Record Minting Volume Amid Gold Trade Concerns
Commodity-backed cryptocurrencies, particularly those linked to gold, have experienced a significant increase in issuance this week, with minting volumes reaching their highest level in five years.
- Gold futures traded above $3,500 this week, following warnings about U.S. tariffs on Swiss gold.
- Despite fluctuations in gold prices after a White House statement on tariff clarifications, the minting of gold-backed tokens like Tether Gold and Paxos Gold surged.
- Minting volumes reached $439 million this week, more than double the previous record of $195 million set in 2021.
- Tokens allow investors to access precious metals easily through on-chain transfers.
- Switzerland exported over $61 billion worth of gold to the U.S. in the past year.
- The tariff situation has prompted calls for the gold sector in Switzerland to address economic impacts, given that gold constitutes over a quarter of the country's exports.
