Institutional Crypto Trading Meets Physical Gold Backing
Crypto market maker Wintermute has officially rolled out institutional over-the-counter (OTC) trading for tokenized gold, marking a major shift in how professional investors access precious metals through blockchain infrastructure. The move positions the firm at the center of the fast-growing digital commodities market, where traditional safe-haven assets are increasingly being traded on-chain.
The new OTC desk supports large block trades in gold-backed tokens, allowing hedge funds, asset managers, proprietary trading firms, and corporate treasuries to execute high-value transactions without slippage on public exchanges. In plain terms: big money can now move into tokenized gold quietly, efficiently, and with deeper liquidity.
Tokenized Gold Market Surges 80% in Three Months
The launch comes as tokenized gold sees explosive growth. As of February 2026, the total market capitalization of gold-backed digital tokens stands at approximately $5.4 billion, reflecting an 80% increase in just three months. That surge mirrors rising institutional demand for blockchain-based real-world assets (RWAs), particularly those tied to stable commodities like gold.
During Q4 2025 alone, trading volume in tokenized gold products reached $126 billion, surpassing the combined quarterly trading activity of several major traditional gold exchange-traded funds (ETFs). Analysts say this shift signals a structural change in how capital flows into precious metals, with blockchain rails providing 24/7 access and faster settlement compared to legacy systems.
Supported Assets: PAXG and XAUT
Wintermute’s OTC desk currently supports two of the largest gold-backed tokens by market value:
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Pax Gold (PAXG), issued by Paxos
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Tether Gold (XAUT), issued by Tether
Each token represents direct ownership of physical gold stored in secure vaults, typically backed on a one-to-one basis with allocated bullion. Investors gain exposure to real gold prices while maintaining the flexibility of digital asset custody and settlement.
Why OTC Trading Matters for Institutions
Over-the-counter trading plays a critical role in institutional crypto markets. Unlike exchange-based trading, OTC desks allow large transactions to be negotiated privately, minimizing market impact. For high-volume players, this structure can reduce execution costs by preserving price stability during order fulfillment.
Wintermute’s expansion into tokenized gold OTC trading reflects a broader industry trend: institutions want exposure to real-world assets without sacrificing the liquidity and flexibility of digital markets.
Settlement options reportedly include major cryptocurrencies, stablecoins, and fiat currency equivalents, allowing funds to hedge macro exposure efficiently. With gold prices remaining resilient amid global inflation concerns and central bank policy shifts, digital gold is increasingly viewed as a portfolio stabilizer.
Forecast: $15 Billion Market by End of 2026
Wintermute’s CEO, Evgeny Gaevoy, has projected that the tokenized gold sector could reach $15 billion in market capitalization by the end of 2026, nearly tripling current levels.
If that forecast holds, tokenized gold would represent one of the fastest-growing segments within the broader real-world asset tokenization market. Industry analysts estimate the total RWA tokenization market could surpass $50 billion by late 2026, driven by commodities, treasury products, and real estate moving on-chain.
The appeal is simple: gold remains a time-tested hedge, while blockchain technology offers transparency, fractional ownership, and around-the-clock liquidity.
Risks and Regulatory Landscape
Despite rapid adoption, tokenized gold markets still face regulatory and operational considerations. Institutional players must evaluate counterparty risk, issuer transparency, reserve audits, and jurisdictional compliance frameworks.
Regulatory clarity continues evolving across the U.S., Europe, and Asia. However, institutional participation suggests confidence in custody standards and reserve verification processes backing leading tokens.
Market observers note that as compliance standards strengthen and reporting transparency improves, adoption could accelerate even further.
The Bigger Picture for Digital Commodities
Wintermute’s entry into tokenized gold OTC trading highlights a deeper transformation underway: the merging of traditional finance (TradFi) with decentralized finance (DeFi). The infrastructure supporting digital commodities is maturing, and liquidity providers are stepping up to serve institutional capital.
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