Tokenized Gold Dominates Weekend Price Discovery as CME Closes

Former Credit Suisse CIO Iggy Iope reveals how tokenized gold assets like PAXG and XAUt now drive 100% of weekend price discovery.

According to Iggy Iope, former Chief Investment Officer at Credit Suisse and current CIO at Theo, tokenized assets such as PAX Gold (PAXG) and Tether Gold (XAUt) effectively account for 100% of visible weekend price discovery.

From Futures to Tokens: Shifting Market Dynamics

While traditional markets are closed, a portion of trading shifts to private OTC deals in Asia that are not publicly reported. This leaves tokenized versions of gold as the only transparent 24/7 channel for monitoring prices.

According to Iope, when the CME resumes trading, a “catch-up” effect is often observed—futures align with the movements that have already occurred in blockchain markets.

The Tokenized Gold Market Sees Explosive Growth

The sector has seen an expansion from approximately $1.6 billion to a $4.4 billion market capitalization—a 177% increase within a single year.

Nearly $2.8 billion in fresh capital has been added to the segment, which now represents a significant portion of collateralized tokenized Real World Assets (RWA).

Volumes are also on the rise. Tokenized gold generated approximately $178 billion in trading volume throughout 2025, with activity in the fourth quarter alone exceeding $126 billion. This would position it among the most traded gold investment products globally.

Who is Driving the Market?

The primary participants are market makers and liquidity providers who arbitrage the differences between digital tokens and traditional markets. Crypto-native macro traders utilize tokenized gold not only for exposure to the metal’s price but also as collateral, a hedge, or a yield-generating tool during periods of geopolitical tension.

While some institutional desks monitor weekend movements, most treat them as indicative signals rather than a direct basis for positioning.

A Real-World Test: Geopolitics

The advantage of 24/7 trading becomes clear during sudden events. During the latest escalation in the Middle East, tokenized gold assets saw a sharp spike on Saturday, while top cryptocurrencies like Bitcoin and Ethereum declined. This allowed investors to immediately reallocate risk instead of waiting for the futures markets to open.

Remaining Limitations

Despite the growth, liquidity remains lower compared to futures or ETFs, making the execution of large orders difficult without price impact. Furthermore, regulatory frameworks and custody rules vary by jurisdiction, which slows down institutional adoption.

In the short term, tokenized gold is likely to exist in parallel with traditional instruments. However, weekend dynamics reveal that blockchain already plays a key role in the global price discovery process—at least when Wall Street is closed.

Source: Cointelegraph