7 key facts about the record flow of funds into Paxos Gold (PAXG) as crypto investors turn to gold

Jakarta, Pintu News – The Paxos Gold (PAXG) token, which represents ownership of physical gold in the form of a crypto asset, recorded $248 million in capital flows in January 2026 – a record high since its launch. Cryptocurrency investors seem to be increasing interest in this gold token amid crypto market uncertainty and precious metal price rallies, making PAXG one of the main instruments in the tokenized gold market at the beginning of the year.

1. Record Flow of Funds January 2026

Defi data shows that PAXG received capital inflows of more than USD $248 million, which is equivalent to around Rp4.17 trillion as of January 2026. This achievement pushed Paxos Gold’s market capitalization to more than USD $2.2 billion (± IDR 36.95 trillion). The magnitude of the inflows indicates growing investor demand for exposure to gold via blockchain rather than traditional crypto assets.

Read More: 5 Key Gold Price Predictions for 2026-2030 in the Context of Global Asset Markets

2. Tokenization of Gold as a Safe-Haven Asset

PAXG is a token backed by physical gold stored in LBMA vaults in London, allowing token owners to digitally own a share of real gold.
In this phase of crypto market volatility, this kind of gold token is becoming the choice of investors looking for a more stable asset. Gold tokenization combines digital liquidity with the intrinsic value of precious metals, thus attracting participation from DeFi and institutional investors.

3. Physical Gold Rally Strengthens Tokenized Assets

Gold prices themselves have experienced a sharp rally, surging above USD 5,300 per ounce in recent weeks. This price increase has also attracted interest in gold-related instruments, including PAXG. The precious metal’s price momentum gained strength due to concerns over macroeconomic conditions and global safe-haven demand.

4. PAXG vs Bitcoin: Risk Asset vs Safe-Haven

While Bitcoin (BTC) and many other crypto assets have been flat or negative over the past 12 months, gold tokens such as PAXG have seen significant capital flows. This reflects a temporary shift from riskier assets to instruments that are considered more stable. PAXG is being used as one way to balance portfolios when crypto volatility increases.

5. Gold Token Liquidity Increases

The total gold token market is now estimated to have surpassed USD $5.5 billion overall. This reflects growth in the tokenized real-world asset (RWA) segment that offers exposure to real-world value. This liquidity makes gold tokens increasingly attractive to investors who want gold exposure without the need for physical management of the metal.

6. Reasons Crypto Investors Are Turning to Gold Tokens

The CEO of a decentralized finance platform said that tokenization of gold increases the utility of the precious metal through digital transferability and flexible ownership sharing. Amid volatile market price movements, gold tokens are seen as a hedging instrument while other digital assets stagnate. Investors see PAXG and similar gold tokens as a way to preserve capital value without having to exit the crypto ecosystem.

7. Market Implications and Investor Outlook

Record capital flows into PAXG mark strong interest in blockchain-based real assets as the broad crypto market faces price pressure. For both young and novice investors in the crypto market, this phenomenon suggests that asset diversification, including in gold tokens, could be part of a risk mitigation strategy. However, the long-term prospects of gold tokens remain dependent on the direction of physical gold prices and global macroeconomic sentiment.

Also Read: 5 Important Insights Predicted SHIB Will Drop First Before Reaching New ATH

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference
– CoinDesk. Paxos’ gold token rakes in record inflows as crypto investors turn to the yellow metal. Accessed January 29, 2026.