#TokenizedGoldTrading Tops $126B as Wintermute Enters Market

Crypto market maker Wintermute has launched institutional over-the-counter trading for gold-backed digital tokens $PAXG and $XAUt, the two largest tokenized gold products by #marketcapitalization. The firm announced Monday that its OTC desk will offer algorithmically optimized spot trading for institutional counterparties seeking gold exposure through blockchain-based settlement.

The launch arrives as tokenized #goldtrading volume surpassed that of five major gold ETFs for the first time, reaching $126 billion in the fourth quarter of 2025 alone, according to Wintermute. Market capitalization for on-chain gold has climbed more than 80% in three months, rising from $2.99 billion to $5.4 billion.

Demand has increased as investors favor 24/7 liquidity and instant blockchain settlement over traditional bullion custody or #ETF structures, which are limited to market trading hours and rely on conventional settlement systems.

Wintermute CEO Evgeny Gaevoy said the firm expects the #tokenized gold market to reach $15 billion in 2026 as institutional adoption accelerates, representing roughly 2.8x growth from current levels.

"We're watching gold undergo the same infrastructure evolution that turned foreign exchange into the world's largest market," Gaevoy said. "Gold is now following that playbook."