Digital Gold Market Could Hit $170B by 2031, Says World Gold Council

According to new research from the World Gold Council (WGC), the digital gold market could grow from approximately $45-$55 billion today to as much as $170 billion by 2031.

The October 19 report predicts around 27% annual growth, pointing to the growing role digital platforms and tokenized assets are playing in gold investing.

While the report spells a big opportunity for the crypto and tokenization industries, it also warns that whether the market actually grows will depend on providers tackling long-standing barriers around trust, access, regulation, and pricing.

What Is Driving Digital Gold Adoption?

Digital gold includes products that let investors own a fractional interest in physical gold stored in a vault, including blockchain tokens backed by the bullion. Unlike traditional gold ETFs, these products can come with different ownership setups and, in some cases, integrate with blockchain-based financial apps.

According to the WGC, digital gold makes up less than 1% of the roughly $13 trillion market for physical investment gold. Still, tokenized gold is already picking up steam, as its value has grown about fivefold since late 2024 to around $6 billion, and trading volume topped $90 billion in Q1 2026.

The WGC sees as much as $700 billion in latent demand, but that’s potential demand if market conditions improve, not a prediction that $700 billion will flow into digital gold by 2031.

Interestingly, the WGC surveyed over 12,000 retail investors and found that almost nine out of ten would consider investing in digital gold under the right circumstances.

Could Tokenized Gold Benefit Crypto Markets?

Tokenized gold products like Tether Gold (XAUT) and Pax Gold (PAXG) show how physical assets can be represented and transferred digitally. Depending on the product and platform, investors might even be able to use gold-backed tokens as collateral for loans or other financial activities.

The WGC thinks these extra uses could make gold more attractive to investors who want more than just a classic store of value. Back in March, it said it was working with Boston Consulting Group (BCG) on shared infrastructure to improve custody coordination, transparency, interoperability, and redemption across digital gold products.

However, growth in tokenized gold doesn’t automatically mean gains for Bitcoin or other crypto tokens. What happens will depend on which networks and platforms back these products and whether that activity creates real demand for their native tokens.

Related: Peter Schiff Says Gold Has a Better Chance to 10x in 5 Years Than Bitcoin