Crypto market maker Wintermute has rolled out an institutional-grade over-the-counter (OTC) desk for tokenized gold, targeting hedge funds, corporates and professional investors seeking 24/7 exposure to the precious metal. The desk supports PAXG (PAX Gold) and XAUT (Tether Gold), settling trades directly on-chain via USDT, USDC, fiat currencies or major cryptocurrencies.
Large Block Trades Without Exchange Fragmentation
The OTC model eliminates slippage and liquidity fragmentation common on public order books, making it suitable for multi-million dollar bullion trades. Physical gold backing these tokens now totals 1.2 million ounces held in vaults, representing roughly $5.98 billion in market cap.
The broader tokenized real-world asset (RWA) market has surpassed $20 billion, led by tokenized T-bills, bonds and money market funds at $7.03 billion. Tokenized gold sits second at $5.98 billion, with only a $1 billion gap. Analysts predict gold could overtake funds to become the largest RWA sub-sector if current growth persists.
$178B Annual Volume Outperforms Gold ETFs in Some Quarters
Tokenized gold products recorded an estimated $178 billion in annual trading volume, occasionally surpassing traditional gold ETFs in quarterly turnover. Wintermute expects the market to expand 2.5-3x to $15 billion by end of 2026.
Crypto Volatility Fuels Shift to Safe-Haven Tokens
The launch comes amid a sharp divergence between crypto and gold performance. Since the October 2025 crash, Bitcoin has fallen 28.16% month-on-month and 28.93% year-on-year, trading in the $60K–$70K range for weeks. In contrast, spot gold hit an all-time high of $5,419 in January 2026 and is currently at $4,917 — up 67.71% year-on-year.
Analysts point to macro uncertainty and crypto market volatility as key drivers. Tokenized gold offers a regulated, on-chain alternative with real-world backing, positioning Wintermute as a bridge between TradFi and DeFi liquidity.