Tokenized Gold: Weekend Pricing Exploration

Tokenized Gold: The New Benchmark for Weekend Pricing?

2 March 2026 at 06: 40

Reading time: 3 minutes

Iggy Ioppe, former chief investment officer at Credit Suisse and now CIO at liquidity infrastructure firm Theo, points out that gold pricing will shift to blockchain networks once U.S. futures markets close for the weekend. CME gold futures will cease trading on Friday at 17:00 PM ET and reopen on Sunday at 18:00 PM ET. During this interim period, regulated futures markets are inactive, with most remaining activity occurring through private over-the-counter (OTC) deals in Asia, which are not publicly reported. This means that tokenized gold assets, such as PAX Gold (PAXG) and Tether Gold (XAUt), will become the only continuously available trading platforms.

When futures trading resumes, prices often align with movements already occurring on blockchain markets. "We're seeing weekend movements mirrored when the CME reopens," says Ioppe.

The sector's market capitalization surged by a staggering 177%, far outpacing the broader gold market and most major spot gold ETFs. The number of holders nearly tripled, with over 115.000 new wallet addresses. This growth represented roughly a quarter of all net inflows into the real asset sector (RWA) and outpaced the combined growth of tokenized equities, corporate bonds, and non-US Treasuries.

Trading activity also saw a significant increase, with tokenized gold trading volume reaching approximately $178 billion by 2025, peaking at over $126 billion in the fourth quarter. This would make it the second-largest gold investment product in the world, measured by trading volume, after SPDR Gold Shares.

Ioppe emphasizes that market makers and cross-venue liquidity providers are the active participants, exploiting price differences between digital and traditional markets. Crypto-native macro traders also play a crucial role by using tokenized gold not only for exposure to gold prices but also for collateral, hedging, and yield strategies during periods of geopolitical or macroeconomic uncertainty. "Some institutions are following the weekend on-chain gold markets, particularly macro and cross-asset desks monitoring gap risk ahead of the CME reopening," he notes. Most institutions view these signals as informative, rather than as the basis for active positions.

Tokenized gold markets offer continuous trading, which offers practical advantages for risk management. If a geopolitical event occurs while futures markets are closed, traditional participants cannot adjust their positions. Tokenized markets enable instant rebalancing.

On Saturday, the price of tokenized gold rose as geopolitical tensions rose following the US and Israeli airstrikes on Iran. Investors shifted to XAUT and PAXG, while Bitcoin (BTC) and Ether (ETH) fell in value. The price of XAUT briefly climbed above $5.450 and PAXG approached $5.536 during the day before paring gains.

However, Ioppe argues that adoption still faces obstacles. Liquidity in tokenized gold is lower than in futures contracts or exchange-traded funds (ETFs), making large transactions difficult to execute without a clear price impact. "Regulatory clarity is improving, but fragmentation across jurisdictions is slowing institutional adoption. Custody, accounting, and capital regulations still vary significantly," Ioppe says.

For now, it's expected that tokenized gold will operate alongside traditional products rather than replace them. "The most likely development in the near term is that tokenized and traditional markets will exist in parallel, with each fulfilling a different function," Ioppe concludes.

Frequently Asked Questions

What role does blockchain play in the gold trading process?
Blockchain enables continuous gold trading even when traditional futures markets are closed, allowing investors to react quickly to market changes.

Why has the market cap of tokenized gold increased so much?
Market capitalization rose 177% due to increased holders and demand for flexible and risk-controlled trading options in an uncertain macroeconomic environment.

What are the biggest obstacles to the adoption of tokenized gold?
Obstacles include limited liquidity compared to traditional markets and various custody and accounting regulations, making institutional investors reluctant to invest on a large scale.

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