Crypto market maker Wintermute is expanding into tokenized commodities, unveiling institutional over-the-counter (OTC) trading for gold-backed digital tokens at a time when broader crypto markets remain under pressure.
The firm announced that its OTC desk will now offer execution services for Paxos Trust Company’s Pax Gold (PAXG) and Tether’s Tether Gold (XAUT), the two largest gold-backed tokens by market capitalization. The move signals growing institutional interest in blockchain-based exposure to physical assets, particularly gold.
A Shift Toward Onchain Gold
Tokenized gold represents physical gold reserves through blockchain-based tokens, allowing investors to trade fractional ownership around the clock. Unlike traditional gold exchange-traded funds (ETFs), which operate during market hours and settle through legacy financial systems, tokenized gold settles onchain and can move instantly between wallets or be deployed as collateral in decentralized finance ecosystems.
According to Wintermute, trading volumes for tokenized gold surpassed those of five major gold ETFs combined for the first time in the fourth quarter of 2025, reaching $126 billion during that period alone. Meanwhile, total market capitalization for onchain gold rose more than 80% over three months, climbing from $2.99 billion to $5.4 billion.
The firm attributes this growth to investors seeking 24/7 liquidity and faster settlement, especially as gold prices hover near record highs amid ongoing macroeconomic uncertainty and discussions around global currency diversification.
“We’re watching gold undergo the same infrastructure evolution that turned foreign exchange into the world’s largest market,” said Wintermute CEO Evgeny Gaevoy in a statement.
He added that the company expects the tokenized gold market to reach $15 billion in 2026 as institutional participation accelerates.
Institutional-Grade Execution
Wintermute’s OTC desk will provide algorithmically optimized spot trading for institutional counterparties. Clients will be able to trade PAXG and XAUT against USDT, USDC, fiat currencies, and major cryptocurrencies, enabling real-time hedging and flexible collateral management.
The company says demand has strengthened as investors look for efficient ways to access gold exposure without relying on physical storage or traditional ETF structures. For institutions already active in digital asset markets, tokenized gold offers a familiar settlement framework combined with the perceived stability of bullion.
Part of a Broader RWA Expansion
The growth in tokenized gold reflects a wider surge in tokenized real-world assets (RWAs), which include everything from bonds and funds to commodities and real estate recorded on blockchain networks.
Research from ARK Invest projects that tokenized assets could exceed $11 trillion by 2030. Meanwhile, Standard Chartered has forecast the tokenized RWA market reaching $2 trillion by 2028. Executives at BlackRock have also described tokenization as a structural shift in global capital markets infrastructure.
Public-market tokenized RWAs alone have already tripled in 2025 to roughly $16.7 billion, according to prior reporting. Analysts increasingly suggest that onchain trading volumes for RWAs could eventually scale into the trillions, reshaping how traditional assets are issued, traded, and settled.
Looking Ahead
While cryptocurrency markets continue to navigate volatility, tokenized gold appears to be gaining traction as a bridge between traditional finance and digital infrastructure. Wintermute’s entry into institutional trading underscores a broader trend: established players are betting that blockchain-based settlement for real-world assets is not a niche experiment, but an emerging standard.
If current adoption trends continue, tokenized gold could become one of the first commodity markets to fully embrace round-the-clock, onchain liquidity—offering investors a new way to access one of the world’s oldest stores of value.
