Former Credit Suisse CIO: Tokenized gold accounts for "nearly 100% of price discovery" during the CME's weekend closure
Svmuu News: Iggy Ioppe, former Chief Investment Officer at Credit Suisse, stated that during the period from the close of CME Group gold futures at 5:00 p.m. (EDT) on Friday until the market reopens at 6:00 p.m. on Sunday, nearly all publicly visible gold price formation occurs in on-chain markets.He noted that during this time window, regulated futures markets are suspended, and while there is activity in over-the-counter (OTC) markets in Asia, it lacks transparency. Consequently, tokenized gold assets such as PAX Gold (PAXG) and Tether Gold (XAUt) become the only continuously tradable public markets.“In terms of publicly visible price formation, on-chain markets accounted for nearly 100% of price discovery over the weekend.”When the CME resumes trading, futures prices typically align with the fluctuations that have already occurred in the on-chain market. Data shows that the market capitalization of tokenized gold has risen to $4.4 billion, with approximately $2.8 billion added over the past year—a 177% increase—far outpacing the performance of most spot gold ETFs.Total trading volume for 2025 was approximately $178 billion, with a single-quarter peak exceeding $126 billion in the fourth quarter; by trading volume, it ranks second only to SPDR Gold Shares.On Saturday, amid U.S.-led airstrikes against Iran and escalating geopolitical tensions, tokenized gold prices rose temporarily, with XAUt briefly breaking through $5,450 and PAXG approaching $5,536, while Bitcoin and Ethereum fell in tandem.Current key participants include market makers, cross-market liquidity providers, and crypto-native macro traders, who utilize tokenized gold for arbitrage, collateralization, hedging, and yield strategies.Some institutions also monitor on-chain gold movements over the weekend to assess “gap risk” ahead of the CME opening, though they generally view this as a reference signal rather than a direct basis for position-building. (Cointelegraph)
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