Wintermute, one of the top crypto market makers, has jumped on the tokenized gold trend and expects the market to triple in size by the end of the year.
The company unveiled support for trading in tokenized gold, starting with Tether Gold and Paxos Gold, on its over-the-counter (OTC) desk for institutional players. This is the first of its kind and signals growing traction in the segment.
According to Evgeny Gaevoy, CEO of Wintermute, the gold boom in the chain could follow the path of the currency market boom.
“We are seeing gold undergo the same infrastructure evolution that has made the foreign exchange market the largest market in the world.”
He added:
“Gold is now following that playbook and we expect the tokenized gold market to reach $15 billion by 2026 as institutional adoption accelerates.”
Will tokenized gold triple by 2026?
Currently, the total market capitalization of the on-chain gold market is approximately $5 billion, according to Coingecko facts. At $15 billion, that would imply threefold market growth by the end of the year.
According to the market maker, the explosive appeal of the segment is already clear. Wintermute believes the tokenized gold market rivals the top five traditional ETFs tracking physical gold trading volume in the fourth quarter of 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: Wintermute
Will Momentum Overshadow BTC?
However, the growth is now being questioned by some analysts. For the unfamiliar, tokenized gold is a token that allows you to gain exposure to physical gold with additional benefits. It is backed by physical gold and supports 24/7 liquidity, instant settlement, and one can even buy small quantities (divisible).
These features make it a welcome upgrade from traditional bullion stores or ETF wrappers. According to a pseudonymous analyst, TXMC, it is the challenges of traditional gold that make BTC viable and attractive.
Hence the question: will the token gold boom erode BTC’s traction?
He begged,
“The main story for centuries has been that BTC beats gold in terms of divisibility, transportability and being digital rather than analog. What happens to those advantages as fully backed, tokenized gold products gain popularity and are highly liquid?”
In fact, Gaevoy recently told CNBC states that the current market weakness has not driven capital out of crypto. Instead, the money was ‘repositioned into tokenized gold’.
It remains to be seen if BTC will trade as a safe haven again or if tokenized gold will derail it.
Final summary
- Wintermute’s CEO predicted that the market cap for on-chain gold could grow three times to $15 billion by the end of the year.
- Tokenized gold reached a value of $126 billion in the fourth quarter of 2025, rivaling major traditional gold ETFs for the first time.