If you read any newsletters that are more macro-oriented along with what you read from The Block, then perhaps you’ve been caught up with the fact that gold has continued to surge to record highs recently, continually boosted by geopolitical tensions.

Given the recent success of the safe-haven asset, it would perhaps be expected that this would translate to some more action in the gold stablecoin market.

However, the gold stablecoin market has historically been pretty bleak. The two major players are Tether, with XAUT, and Paxos, with PAXG, but compared to the two firms’ dollar stablecoins, USDT and USDP, these seem like just a blip. Even with the recent run-up in gold, XAUT has a market cap of $580 million, and PAXG’s even lower at just under $450 million.

XAUT’s supply…