How Tokenized Gold is Earning DeFi Yields: The 2025 Guide to On-Chain Gold APY

Tokenized gold has emerged as a powerhouse in decentralized finance (DeFi), allowing investors to earn on-chain yields while maintaining exposure to the world’s most enduring asset. As of November 21,2025, the price of PAX Gold (PAXG) stands at $4,063.20, reflecting both surging demand for digital gold and the maturation of tokenization infrastructure. Today’s top platforms, Oro Finance, Creek (Creek Finance), Pax Gold (PAXG), Tether Gold (XAUT), Ondo Finance, BlackRock BUIDL, Ethena, AurusGOLD (AWG), Cache Gold (CGT), and Meld Gold, are transforming physical gold into programmable assets that can be staked, lent, or used as collateral to generate yield in DeFi protocols.

Why Tokenized Gold Yields Matter in 2025

The intersection of blockchain and precious metals is no longer theoretical. With tokenized gold market capitalization now exceeding $2.5 billion, investors are leveraging platforms like Pax Gold (PAXG) and Tether Gold (XAUT) to unlock new forms of yield. Unlike traditional gold ETFs or vault storage, which offer no native yield, DeFi platforms enable users to put their digital gold to work.

This shift is driven by several factors:

• Liquidity: Tokenized gold can be instantly traded or pledged as collateral across multiple blockchains.
• Programmable Yield: Platforms like Oro Finance and Creek Finance allow users to stake gold tokens for on-chain APY or participate in liquidity pools earning protocol rewards.
• Transparency: Blockchain-based audits ensure every token is backed by physical bullion held in secure vaults.

The result? Investors gain exposure to gold’s stability plus access to yield strategies previously reserved for stablecoins or more volatile crypto assets.

The Top Platforms Powering DeFi Gold Staking and Yield Generation

A select group of platforms is leading the charge in enabling tokenized gold holders to earn DeFi yields. Here’s how the current leaders stack up:

• Pax Gold (PAXG): The largest ERC-20 gold token by market cap, PAXG is widely integrated across lending protocols and AMMs. Users can supply PAXG as collateral on DeFi platforms like Falcon Finance or participate in liquidity pools for modest but sustainable APY.
• Tether Gold (XAUT): XAUT is increasingly used on platforms such as Ondo Finance and BlackRock BUIDL for staking and borrowing against digital gold positions.
• AurusGOLD (AWG), Cache Gold (CGT), Meld Gold: These tokens have carved out niches by offering flexible redemption options and integration with emerging DeFi protocols specializing in precious metals.
• Oro Finance and Creek Finance: Both newcomers have built robust ecosystems focused on maximizing real yield from staked digital gold through innovative lending markets and structured products.

This ecosystem is rapidly evolving, with BlackRock BUIDL and Ethena leveraging institutional-grade custody solutions while enabling users to earn passive income via staking programs tied directly to physical bullion reserves.

Navigating Yields: How On-Chain APY Works for Digital Gold

Earning yield from tokenized gold typically involves one of three mechanisms:

1. Lending Protocols: Supply your PAXG or XAUT as collateral on DeFi lending markets such as those built by Ondo Finance or Creek Finance. Borrowers pay interest, which translates into APY for lenders, though recent averages hover below 1%, a figure notably lower than traditional finance returns due partly to unsustainable incentive models seen earlier this year.
2. Staking Pools: Stake your Oro Finance or AurusGOLD tokens within platform-native pools to receive a share of protocol fees or additional rewards denominated in governance tokens or stablecoins.
3. Synthetic Yield Strategies: Some advanced protocols like BlackRock BUIDL combine real-world bullion custody with algorithmic strategies that optimize returns through automated rebalancing between stablecoin lending markets and physical redemption windows.

The key advantage? Flexibility. Investors can move seamlessly between earning strategies while maintaining direct ownership over their underlying asset, a breakthrough compared to legacy ETF models.
For a deeper dive into these mechanisms, and how they compare across different protocols, see our guide on tokenized gold passive income strategies.

Despite the promise of programmable yield, investors must approach tokenized gold APY with a critical eye. While the infrastructure has matured, recent data shows that average DeFi yields on gold tokens remain under 1%. This is well below the 3%-5% returns seen in traditional finance for similar risk profiles. The gap is largely due to early-stage inefficiencies and overreliance on token rewards, which proved unsustainable as market volatility normalized in 2025.

However, not all platforms are created equal. For example, Oro Finance and Creek Finance have differentiated themselves by focusing on real-yield models, generating returns through actual lending demand or protocol fees rather than excessive emissions. Meanwhile, heavyweights like BlackRock BUIDL and Ondo Finance bring institutional rigor to custody and compliance, making them attractive for both retail and professional investors seeking transparency and security.

Key Considerations Before Earning Yield With Tokenized Gold

If you’re considering putting your digital gold to work in DeFi, keep these factors front of mind:

• Smart Contract Risk: Even with audits, vulnerabilities can exist. Platforms like Meld Gold, AurusGOLD (AWG), and Cache Gold (CGT) have invested heavily in security but always review audit reports before participating.
• KYC and Regulatory Compliance: Some protocols, especially those backed by institutions such as BlackRock BUIDL, require rigorous identity checks. Understand the tradeoff between privacy and access.
• LTV Ratios and Liquidation Risks: Lending platforms set collateralization thresholds; if the price of PAXG drops below $4,063.20 (current as of November 21,2025), your position could be liquidated. Monitor gold price movements closely.
• Yield Sustainability: Look for platforms with transparent fee structures and sustainable reward models. Avoid chasing high APY driven solely by token emissions.

The diversity of offerings means there’s no one-size-fits-all solution. For some, staking Oro Finance or Creek tokens in native pools may provide steady if modest returns; for others, using PAXG or XAUT as collateral on Ondo Finance or Ethena unlocks more advanced yield strategies while maintaining exposure to physical bullion.

What’s Next for Tokenized Gold Yield?

The next phase will likely see further integration between DeFi protocols and institutional custodianship. As regulatory clarity improves, and as leaders like BlackRock BUIDL scale up their programmable asset offerings, the gap between on-chain APY and traditional finance yields is expected to narrow. Already, SmartGold’s $1.6 billion IRA tokenization partnership with Chintai Nexus signals growing mainstream adoption of blockchain-based gold earning strategies.

The bottom line: Tokenized gold yield products are maturing rapidly but require careful due diligence from investors. Whether you’re drawn to the flexibility of Creek Finance’s lending markets or the institutional pedigree of BlackRock BUIDL, understanding platform-specific risks will be crucial for maximizing your digital gold earning interest in 2025 and beyond.

Top 10 Tokenized Gold Platforms for DeFi Yields (2025)

1. 

   Oro Finance offers a seamless platform for tokenizing physical gold and deploying it in DeFi protocols. Users can stake gold-backed tokens to earn yield or access liquidity, leveraging robust blockchain security and transparent audits.

2. 

   Creek (Creek Finance) enables users to mint gold-backed tokens and participate in DeFi staking pools. The platform integrates with major lending protocols, allowing investors to earn competitive APY on their digital gold assets.

3. 

   PAX Gold (PAXG) is a leading gold-backed token, each representing one fine troy ounce of London Good Delivery gold. With a price of $4,063.20 as of November 21, 2025, PAXG can be used as collateral on DeFi platforms to generate yield or borrow stablecoins.

4. 

   Tether Gold (XAUT) provides digital ownership of physical gold, fully backed and stored in Swiss vaults. XAUT is widely integrated in DeFi, including platforms like Falcon Finance, where it can be used as collateral to mint stablecoins and earn on-chain yields.

5. 

   Ondo Finance bridges real-world assets and DeFi, offering tokenized gold products and structured yield opportunities. Users can stake gold tokens or provide liquidity to earn programmable returns.

6. 

   BlackRock BUIDL is a major institutional platform facilitating the tokenization of gold and other assets. It integrates with DeFi protocols to enable staking and yield generation, backed by BlackRock’s infrastructure and compliance standards.

7. 

   Ethena is a DeFi-native protocol supporting gold-backed tokens as collateral for synthetic assets and yield farming. Its innovative strategies allow users to earn APY while maintaining exposure to gold’s price movements.

8. 

   AurusGOLD (AWG) issues gold-backed tokens redeemable for physical gold. AWG can be staked or used in liquidity pools across various DeFi ecosystems, offering holders both yield and easy gold redemption.

9. 

   Cache Gold (CGT) provides fully-backed, redeemable gold tokens with transparent, real-time auditability. CGT holders can access DeFi lending protocols, using their tokens for yield generation or as collateral for loans.

10. 

    Meld Gold connects physical gold markets with blockchain, enabling users to tokenize, trade, and stake gold for DeFi yields. The platform focuses on transparency, liquidity, and seamless gold-to-crypto integration.

If you’re ready to explore deeper how each protocol stacks up, and how real-world use cases are evolving, check out our comprehensive analysis at Tokenized Gold: Real Yield and Institutional Adoption in 2025.