Wintermute, a leading crypto market maker, has jumped on the token gold trend and expects the market to triple by the end of the year.
The company revealed its support for tokenized gold trading, starting with Tether Gold and Paxos Gold, on its over-the-counter (OTC) desk for institutional players. This is the first of its kind, a sign of growing traction in the segment.
For Evgeny Gaevoy, CEO of Wintermute, the on-chain gold boom could follow the path of the foreign exchange market boom.
“We see gold undergoing the same infrastructural evolution that has made foreign exchange the largest market in the world.”
He added,
“Gold is now following this pattern, and we expect the tokenized gold market to reach $15 billion in 2026 as institutional adoption accelerates.”
Will tokenized gold triple in 2026?
Currently, the overall market capitalization of the on-chain gold market is around $5 billion, according to Coingecko. data. At $15 billion, this would imply a 3x market growth by the end of the year.
According to the market maker, the explosive growth of the segment is already evident. Wintermute estimates that the tokenized gold market rivaled the top five traditional ETFs that track physical gold in terms of trading volume in Q4 2025.
The segment, led by Tether Gold (XAUT) and Paxos Gold (PAXG), reached $126 billion in trading volume last quarter, surpassing the top five traditional gold ETFs for the first time.
Source: Winter Mute
Will this momentum eclipse BTC?
However, this growth is now being questioned by some analysts. For those unfamiliar, tokenized gold is a token that provides exposure to physical gold with additional benefits. It is backed by physical gold and supports 24/7 liquidity, instant settlement and one can purchase even small (divisible) quantities.
These features make it a welcome upgrade over traditional bullion storage or ETF wrappers. According to a pseudonymous analyst, TXMC, the challenges of traditional gold are what make BTC viable and attractive.
Hence the question: will the token gold boom hamper BTC’s traction?
He implored,
“For ages, the main story has been that BTC beats gold in terms of divisibility, transportability, and being digital rather than analog. What happens to these advantages if tokenized, fully collateralized gold products gain traction and are highly liquid?”
In fact, Gaevoy recently said CNBC that the current market weakness has not driven capital away from crypto. Instead, the silver “was repositioned as symbolic gold.”
It remains to be seen whether BTC will become a safe haven again or whether token gold will derail it.
Final Summary
- Wintermute CEO predicts that the on-chain gold market cap could triple by the end of the year to $15 billion.
- Tokenized gold reached $126 billion in Q4 2025, rivaling major traditional gold ETFs for the first time.
