Digital asset market maker Wintermute has introduced institutional over-the-counter (OTC) trading for tokenized gold products, expanding its footprint into on-chain commodities.
The new desk focuses on the two largest gold-backed tokens by market capitalization: Pax Gold (PAXG) and Tether Gold(XAUT).
Market Expansion Accelerates
Wintermute CEO Evgeny Gaevoy projects that the tokenized gold market could reach $15 billion by the end of 2026, implying roughly a 2.8x expansion from current levels.
Several structural factors are driving this growth:
- Infrastructure Evolution: Gaevoy compared gold’s tokenization phase to the structural shift that transformed foreign exchange into the world’s largest financial market.
- Surging Demand: On-chain gold market capitalization has increased more than 80% in three months, rising from $2.99 billion to $5.4 billion.
- Record Trading Activity: In Q4 2025, tokenized gold trading volume reached $126 billion, exceeding the combined volume of five major gold ETFs for the first time.
The data suggests growing institutional acceptance of blockchain-based commodity exposure.
Institutional Trading Capabilities
Wintermute’s new OTC desk is designed specifically for institutional counterparties, offering algorithmically optimized spot execution.
Key features include:
- Flexible Trading Pairs: PAXG and XAUT can be traded against USDT, USDC, major cryptocurrencies, and fiat currencies.
- Real-Time Hedging: Institutions gain faster collateral mobility compared to traditional bullion or ETF structures.
- 24/7 Liquidity: Around-the-clock trading and instant settlement provide flexibility that traditional markets cannot replicate.
Gold Price Context
The launch comes as physical gold consolidates around the $5,000 per ounce psychological level in early 2026. Some analysts project potential upside toward $5,800 in the second quarter, reinforcing interest in tokenized exposure.
Wintermute’s move reflects a broader convergence between traditional commodities and blockchain infrastructure, positioning tokenized gold as a bridge between physical assets and digital markets.
