Crypto market maker Wintermute is expanding into tokenized commodities by launching institutional over-the-counter trading for gold-backed digital tokens as the sector gains momentum despite a broader crypto downturn.
The firm announced Monday that its OTC desk will now offer execution in Pax Gold (PAXG) and Tether Gold (XAUT), the two largest gold-backed tokens by market capitalization.
According to a statement shared with The Block, Wintermute intends to provide algorithmically optimized spot trading for institutional counterparties seeking exposure to gold via blockchain-based settlement.
The expansion arrives as tokenized gold trading volume surpassed that of five major gold ETFs for the first time, reaching $126 billion in the fourth quarter of 2025 alone, the firm said.
Market capitalization for onchain gold has climbed more than 80% in three months, from $2.99 billion to $5.4 billion, as investors increasingly favor 24/7 liquidity and instant settlement over traditional bullion custody or ETF wrappers.
“We’re watching gold undergo the same infrastructure evolution that turned foreign exchange into the world’s largest market,” Wintermute CEO Evgeny Gaevoy said in the statement. “Gold is now following that playbook, and we expect the tokenized gold market to reach $15 billion in 2026 as institutional adoption accelerates.”
Tokenized gold refers to blockchain-based tokens backed by physical gold reserves, allowing holders to trade fractionalized exposure around the clock. Unlike ETFs, which trade during market hours and rely on traditional settlement rails, tokenized assets settle onchain and can be transferred or used as collateral in decentralized finance systems.
Wintermute’s desk will enable institutions to trade PAXG and XAUT against USDT, USDC, fiat currencies, and major crypto assets, facilitating real-time hedging and collateral mobility. The firm said demand has strengthened as gold trades near all-time highs amid persistent macro uncertainty and de-dollarization narratives.
Tokenized RWAs
The rise in tokenized bullion forms part of a broader expansion in tokenized real-world assets, or RWAs.
Recent research from ARK Invest projected tokenized assets could surpass $11 trillion by 2030, while Standard Chartered has forecast tokenized RWAs reaching $2 trillion by 2028. Executives at BlackRock have similarly described tokenization as a structural shift for capital markets.
Tokenized public-market RWAs already tripled in 2025 to roughly $16.7 billion, according to prior reporting from The Block, and analysts have predicted onchain RWA trading volumes could eventually reach a trillion-dollar scale.
© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Trade Crypto On Coinhub Exchange
Trade Crypto On Coinhub Exchange
Stay ahead of the market by turning news insights into trading opportunities. With Coinhub Exchange, you can seamlessly buy, sell, and manage your digital assets, all in one secure platform. Take advantage of real-time market insights, deep liquidity, and fast execution for your favorite cryptocurrencies. Don’t just read about it — trade crypto now!
Disclaimer
The content of this article shown by Coinhub News, powered by The Block, is for informational purposes only and should not be construed as financial, legal, tax, or investment advice. Coinhub News and its affiliates are not a licensed financial advisor, legal advisor, broker, or tax advisor, and ... should not be considered as professional advice or a recommendation to engage in any specific investment, legal decision, or financial transaction. Cryptocurrency markets are highly speculative and volatile. Readers should perform their own independent research and consult with a qualified professional before making any financial or legal decisions. The opinions expressed in this article are those of the author and do not necessarily represent the views or opinions of the Company of its affiliates. Additionally, the Company does not make any representations or warranties regarding the accuracy, timeliness, reliability, or completeness of any information in this article. By accessing this content, you acknowledge that any reliance on the information contained in this article is solely at your own risk. The Company is not responsible for any financial losses, legal disputes, or other damages that may arise from reliance on this content or from any investment or legal decisions based on the information provided. Investing in cryptocurrencies involves substantial risks, including the risk of losing your entire investment, and you should carefully consider whether it is appropriate for your circumstances.
Read more
