On-chain gold is currently dominated by two physically backed tokens: PAXG and XAUT, representing the most advanced segment of asset tokenization (excluding stablecoins) and the most widely held tokenized asset on Ethereum. The total market capitalization currently stands at approximately $4–6 billion. On Ethereum, ranked by number of holders, PAXG (Pax Gold) has around 90,000 holders, while XAUT (Tether Gold) has approximately 40,000 holders—far surpassing other tokenized assets (such as certain government bond tokens, which typically have fewer than 20,000 holders). (Source: Token Terminal, April 2026 data) Currently, on-chain gold is primarily concentrated on Ethereum. On-chain gold is not merely “digital gold bars”; it can also serve as collateral in Ethereum DeFi protocols (such as Aave), be traded on DEXs like Uniswap, and provide liquidity. Holders can transfer, borrow, and earn yield on their holdings 24/7—capabilities far superior to those on other blockchains with significantly lower liquidity. Both institutional and retail investors prefer to hold gold on-chain due to Ethereum’s unmatched liquidity and composability. If on-chain platforms were to capture just 10% of global gold value—currently estimated at $1.4–1.6 trillion—the tokenized gold market alone could reach several trillion dollars, especially considering future price appreciation. This alone demonstrates that Ethereum’s role in asset tokenization will be substantial, even if limited to gold.