Tokenized gold trading explodes, with crypto market maker Wintermute rushing into the institutional OTC market

The wave of on-chain assets is sweeping through the traditional financial sector. Cryptocurrency market maker Wintermute recently announced that it will officially enter tokenized commodity trading, launching institutional-grade OTC services for gold-backed digital assets, providing a new way for global investors to gain exposure to gold.

Despite overall volatility in the crypto market, the emerging asset class of tokenized gold is growing against the trend, attracting increasing institutional interest. This trend reflects a profound transformation in traditional gold investment methods.

Gold Tokenization Surpasses Traditional ETFs, Market Size Expands Rapidly

According to Wintermute’s announcement, its OTC trading division has now begun providing trading execution services for Pax Gold (PAXG) and Tether Gold (XAUT). These two projects are currently the largest market cap gold-backed tokens and are core targets in the tokenized gold space.

In Q4 2025, trading activity in tokenized gold surpassed the total trading volume of the world’s five largest gold ETFs for the first time, reaching an astonishing $12.6 billion. This milestone marks on-chain gold assets as an unstoppable force in the financial markets.

Latest market data shows that PAXG’s circulating market cap has reached $257 million, while XAUT’s is $290 million, totaling over $547 million. Over the past three months, the market cap of on-chain gold assets has grown by more than 80%, fully demonstrating their investment appeal.

Wintermute Launches OTC Services to Offer Algorithm-Optimized Trading for Institutional Clients

Wintermute’s move aims to provide algorithm-optimized spot trading solutions for institutional investors seeking gold exposure through blockchain-based settlement mechanisms. The company states that the OTC platform will support trading pairs of PAXG and XAUT with USDT, USDC, major fiat currencies, and leading cryptocurrencies, meeting institutional clients’ needs for real-time hedging and liquidity management.

Compared to traditional gold investment channels, tokenized gold offers significant advantages. Traditional gold bars and ETF structures are limited by standard market hours and conventional settlement systems, whereas on-chain tokenized gold assets settle in real-time, can be transferred within decentralized finance platforms, or used as collateral, enabling 24/7 fragmented trading and unprecedented flexibility for investors.

On-Chain Gold Assets Surge 80%, Future Outlook Promising

Wintermute CEO Evgeny Gaevoy commented on this development, noting that gold is undergoing a foundational transformation similar to the restructuring of the foreign exchange market. With increasing participation from institutional players, the growth rate of the tokenized gold industry is exceeding expectations.

Strong demand is driven by multiple factors. Ongoing macroeconomic uncertainties, continued discussions around de-dollarization, and gold prices near all-time highs have all boosted investor demand for gold assets. Digitized gold, offering round-the-clock liquidity and instant settlement, meets the diversified needs of modern institutional investors.

Industry forecasts suggest that as more market makers and trading platforms join the tokenized gold ecosystem, this niche market will accelerate its growth. The rapid expansion of on-chain gold assets has become a powerful testament to the integration of traditional finance and decentralized finance.