Tokenized gold leads ‘100% of weekend price discovery’ while CME futures are closed

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Gold pricing shifts onto blockchain networks once US futures markets close for the weekend, according to Iggy Ioppe, former chief investment officer at Credit Suisse and now chief investment officer (CIO) at liquidity infrastructure firm Theo.

CME gold futures stop trading at 5:00 pm ET on Friday and reopen at 6:00 pm ET on Sunday. During that interval, regulated futures markets are inactive and most remaining activity occurs through private over-the-counter deals in Asia that are not publicly reported. As a result, tokenized gold assets such as PAX Gold (PAXG) and Tether Gold (XAUt) become the only continuously available trading venues.

“In terms of publicly visible price formation, onchain markets are responsible for virtually 100% of weekend price discovery,” Ioppe told Cointelegraph.

He added that when futures trading resumes, prices often align with movements that already occurred on blockchain markets. “We are seeing weekend moves reflected when CME reopens,” he said.

Tokenized gold market cap jumps to $4.4 billion

The shift comes amid rising trading volume for tokenized gold. As Cointelegraph reported, tokenized gold expanded rapidly over the past year, adding nearly $2.8 billion in value and growing from about $1.6 billion to $4.4 billion in market capitalization.

The sector’s market cap rose 177%, far outpacing the broader gold market and most major spot gold ETFs, while the number of holders nearly tripled with more than 115,000 new wallets. The growth represented roughly a quarter of all net inflows into the real-world asset (RWA) sector and exceeded the combined expansion of tokenized stocks, corporate bonds and non-US Treasurys.

Trading activity also surged, with tokenized gold recording about $178 billion in 2025 volume and peaking above $126 billion in the fourth quarter. That level would make it the second-largest gold investment product globally by trading volume after SPDR Gold Shares.

Ioppe said that market makers and cross-venue liquidity providers dominate participation, arbitraging price differences between digital and traditional markets. Crypto-native macro traders also play a major role, using tokenized gold not only for exposure to bullion prices but also for collateral, hedging and yield strategies during periods of geopolitical or macroeconomic uncertainty.

“Some institutions are monitoring weekend onchain gold markets, particularly macro and cross-asset desks that track gap risk ahead of the CME reopen,” he said, noting that most institutions treat the signal as informational rather than a basis for active positioning.

24/7 tokenized gold trading lets investors manage risk

Tokenized gold markets allow for continuous trading, which offers a practical risk management advantage. If a geopolitical event occurs while futures markets are closed, traditional participants cannot adjust positions. Tokenized markets allow immediate rebalancing.

On Saturday, tokenized gold rallied as geopolitical tensions escalated following US and Israeli strikes on Iran, with investors moving into XAUT and PAXG while Bitcoin (BTC) and Ether (ETH) fell. XAUT briefly climbed above $5,450 and PAXG neared $5,536 during the day before trimming gains, according to data from CoinMarketCap.

However, Ioppe said adoption still faces obstacles. Liquidity remains smaller than in futures or exchange-traded funds (ETFs), making large trades harder to execute without moving prices. “Regulatory clarity is improving, but fragmentation across jurisdictions slows institutional deployment. Custody, accounting, and capital rules still vary widely,” he said.

For now, tokenized gold is expected to operate alongside traditional products rather than replace them. “The most likely near-term evolution is that of tokenized and traditional markets existing in parallel, each serving a different function,” Ioppe concluded.

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