Tokenized Gold Dominates Weekend Price Discovery as CME Futures Close
Tokenized gold leads price discovery on weekends when CME futures are closed, with a market cap reaching $4.4 billion.Summary
According to Iggy Ioppe, CIO at Theo, gold pricing increasingly shifts to blockchain networks when CME futures markets are inactive over the weekend. During this time, tokenized gold assets like PAX Gold (PAXG) and Tether Gold (XAUt) become the primary venues for price discovery, accounting for virtually 100% of publicly visible price formation. This is because CME gold futures trading halts at 5:00 pm ET on Friday and resumes at 6:00 pm ET on Sunday, leaving a gap filled by on-chain markets. The tokenized gold market cap has surged 177% to $4.4 billion, driven by increased trading volume and a growing number of holders. Market makers and crypto-native macro traders are key participants, utilizing tokenized gold for arbitrage, collateral, and hedging. The 24/7 trading offered by tokenized gold allows investors to manage risk during geopolitical events, as demonstrated by a rally in XAUT and PAXG following recent tensions. While adoption faces challenges related to liquidity and regulatory clarity, tokenized gold is expected to coexist with traditional markets, serving different functions.
(Source：Cointelegraph)