Cryptocurrency market maker Wintermute launched institutional over-the-counter trading for gold-backed tokens Monday as the sector's market capitalization reached $5.4 billion.
The firm's OTC desk will offer execution services for Pax Gold and Tether Gold, the two largest tokenized gold products by market value.
Wintermute CEO Evgeny Gaevoy projected the tokenized gold market could expand to $15 billion by year-end, representing 2.8 times current levels.
The forecast came amid a broader cryptocurrency market downturn that has seen bitcoin decline nearly 50% from October 2025 peaks.
Market Growth and Trading Volume
Tokenized gold market capitalization increased more than 80% over three months, rising from $2.99 billion to $5.4 billion. Fourth quarter 2025 trading volume for gold-backed tokens reached $126 billion, surpassing five major gold exchange-traded funds combined, according to Wintermute's statement.
The tokens offer 24-hour trading and blockchain-based settlement, differentiating them from traditional gold ETFs that trade only during market hours. Each token represents ownership of one troy ounce of physical gold stored in regulated vaults.
Wintermute's desk will enable institutions to trade PAXG and XAUT against USDT, USDC, fiat currencies and major cryptocurrencies. The firm cited increased demand as gold prices trade near all-time highs amid macroeconomic uncertainty.
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Broader Tokenization Context
The expansion fits within growing institutional interest in tokenized real-world assets. ARK Invest projected tokenized assets could surpass $11 trillion by 2030, while Standard Chartered forecast tokenized RWAs reaching $2 trillion by 2028.
Tokenized public-market real-world assets tripled during 2025 to approximately $16.7 billion, according to prior data from The Block. BlackRock executives have described tokenization as a structural shift for capital markets.
XAUT and PAXG together account for approximately 97% of the tokenized gold market. Both tokens trade on Ethereum and other blockchain networks, with XAUT holding a market cap near $3.6 billion and PAXG at $2.3 billion as of mid-February 2026.
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