Crypto market maker Wintermute has launched an institutional over-the-counter (OTC) trading desk for the two largest gold-backed tokens, Pax Gold (PAXG) and Tether Gold (XAUT). This move expands the firm's OTC services into tokenized commodities, offering algorithmically optimized spot execution for institutional clients seeking gold exposure via blockchain settlement.
Trading will be available against major stablecoins like USDT and USDC, fiat currencies, and other crypto assets, enabling real-time hedging and collateral reallocation. The launch comes amid a significant surge in the tokenized gold market. On-chain gold market capitalization has risen more than 80% in three months, from $2.99 billion to $5.4 billion. Furthermore, trading volume for tokenized gold reached $126 billion in Q4 2025, surpassing the combined volume of five major gold ETFs.
Wintermute CEO Evgeny Gaevoy framed this growth as part of a major infrastructure evolution, stating, "We're watching gold undergo the same infrastructure evolution that turned foreign exchange into the world's largest market. Gold is now following that playbook." He projects the tokenized gold market could reach $15 billion by the end of 2026, a nearly 2.8x increase from current levels.
The initiative is part of the broader Real-World Asset (RWA) tokenization trend. Public-market RWAs tripled in 2025 to roughly $16.7 billion, with forecasts from firms like ARK Invest and Standard Chartered projecting the tokenized asset market could reach trillions of dollars by 2030. Tokenized gold acts as a bridge, offering the benefits of a traditional safe-haven asset with the 24/7 liquidity, faster on-chain settlement, and programmability of blockchain networks.
