Aave V3 now controls over 50% of all tokenized gold deposited across decentralized finance lending protocols. Combined collateral for PAXG and XAUT on Aave V3 and Morpho stood at approximately $63 million in early 2026, representing only 1.5% of the combined market capitalization of roughly $4.2 billion. PAXG, backed by London Good Delivery gold bars held in Brinks vaults, and XAUT, backed by gold stored in Swiss vaults, are the main accepted tokens. Tokenized gold trading volumes surpassed $90 billion in Q1 2026, highlighting the significant untapped potential for greater collateral deployment.
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