Modular oracle provider RedStone published a report showing that tokenized gold assets held up during the Warsh shock, a precious metals sell-off that saw gold drop over 11% intraday and silver crater 31.4%. The two dominant products, Tether’s XAUT and Paxos’ PAXG, both tracked spot prices accurately with no depegging, oracle failures, or cascading liquidations. Tokenized gold market capitalization reached approximately $3 billion in early 2026, with monthly transfer volumes exceeding $8 billion. Only $193 million, representing 6.4% of the market cap, is currently deployed in DeFi protocols, almost exclusively through XAUT. DeFi lending adoption remains constrained by insufficient order book depth, regulatory uncertainty, and limited user education.
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