Wintermute, a major crypto market maker, has entered the tokenized gold market with institutional over-the-counter (OTC) trading for Pax Gold and Tether Gold, the two largest gold-backed digital tokens by market capitalization. The firm announced its OTC desk will offer algorithmically optimized spot trading for institutional investors seeking gold exposure through blockchain-based settlement.
The launch comes as tokenized gold trading volume surpassed that of five major gold ETFs, reaching $126 billion in the fourth quarter of 2025. The market capitalization for on-chain gold has surged more than 80% in three months, rising from $2.99 billion to $5.4 billion. Investors are increasingly favoring the 24/7 liquidity and instant blockchain settlement offered by tokenized gold over traditional bullion custody or ETF structures.
Wintermute CEO Evgeny Gaevoy expects the tokenized gold market to reach $15 billion in 2026, representing roughly 2.8x growth from current levels. He compared the evolution of gold to that of foreign exchange, noting that gold is now following a similar playbook. The firm's OTC desk will allow institutions to trade Pax Gold and Tether Gold against USDT, USDC, fiat currencies, and major crypto assets, enabling real-time hedging and collateral mobility.
Demand for tokenized gold has been strengthened by persistent macroeconomic uncertainty and de-dollarization narratives, with gold trading near all-time highs. Tokenized gold, part of the broader category of tokenized real-world assets (RWAs), has seen rapid expansion. Tokenized public-market RWAs tripled in 2025 to approximately $16.7 billion, with projections suggesting tokenized assets could surpass $11 trillion by 2030 and tokenized RWAs reaching $2 trillion by 2028.