Wintermute Opens Institutional OTC Desk for Tokenized Gold (PAXG, XAUT)
Wintermute, a leading crypto market maker, has launched an institutional over-the-counter (OTC) desk for tokenized gold, offering 24/7 algorithmic pricing and confidential, large-block execution for Pax Gold (PAXG) and Tether Gold (XAUT). The desk accepts settlement against major stablecoins (USDT, USDC), fiat and other crypto assets and uses Wintermute’s balance sheet and algo-pricing to reduce slippage and market impact versus public order books. Management cited rising institutional demand and macro volatility as drivers; CEO Evgeny Gaevoy projects tokenized gold could reach $15 billion by end-2026. Wintermute notes rapid recent growth in the sector — market cap rose from roughly $2.99bn to $5.4bn in one quarter and quarterly trading volumes reached about $126bn — and says the desk will appeal to hedge funds, family offices and corporate treasuries. Underlying tokens remain issued and custodied by Paxos and Tether with third-party audits; key risks include issuer/custodian counterparty exposure and evolving regulation. For traders, the new OTC service should improve execution and liquidity for large PAXG and XAUT trades, tighten pricing on big orders, and reduce execution risk — potentially accelerating institutional inflows into tokenized precious metals.
Bullish
The OTC desk directly improves liquidity and execution for PAXG and XAUT by enabling large-block trades off public order books with algorithmic pricing and balance-sheet support. That reduces slippage and execution risk for institutional-sized orders, which lowers barriers for big buyers (hedge funds, family offices, treasuries) to enter or expand positions. Short term this can compress spreads and support higher bids for the tokens as larger counterparties transact with less market impact. Over the medium-to-long term, dedicated institutional infrastructure and cited market growth projections (to $15bn by 2026) increase the likelihood of sustained inflows into tokenized gold, supporting higher baseline demand. Offsetting risks are issuer/custodian counterparty exposure and regulatory uncertainty, which could create episodic selling pressure if concerns materialize. On balance, the immediate effect on token prices is likely positive as execution friction falls and institutional participation rises.