Tokenized commodities, which are blockchain tokens tied to physical assets such as metals and energy, have moved beyond a narrow focus on gold. At the end of March 2026 the sector’s total value reached about $5.55 billion, a rise from $1.43 billion at the start of 2025. The surge is largely attributable to gold-backed tokens issued by Paxos and Tether, which together account for roughly nine-tenths of the growth.
Lending linked to precious metals
Paxos is developing a gold-backed token that incorporates a lending component. The token is anchored to PAX Gold, which was priced at $4,183.46 per ounce, and is structured so that borrowers’ repayments—calculated in ounces—can increase the amount of gold that token holders can redeem. The firm’s co-founder describes the model as a way to broaden access to gold financing, traditionally limited to large institutions.
A separate silver product from Theo passes lease income from institutional silver holdings to token owners while preserving exposure to spot prices. The company’s chief investment officer notes that silver’s industrial demand and existing leasing market make it a natural follow-up to gold, even though price volatility and tighter supply could complicate scaling.
Both executives anticipate that the tokenized commodity market could reach tens of billions of dollars within five years and exceed $100 billion in ten years, eventually becoming a routine part of commodity settlement and financing.
Energy tokens and logistical hurdles
EnSub is extending the concept to oil, having launched a token that represents a single barrel of West Texas Intermediate crude. The token, originally on Ethereum, was also deployed on Solana on October 2, allowing holders to claim ownership of verified physical inventory. The company says it is working on analogous tokens for natural gas and Brent crude.
The CEO expects demand from energy purchasers seeking cost hedges, investors after exposure, and suppliers needing working capital. He projects that oil-related tokens could capture about a quarter of the global oil market within a decade. However, the firm acknowledges that continuous movement of energy commodities makes custody, verification and settlement more complex than for static metals.
Ongoing challenges
Across the board, participants highlight three primary obstacles: secure custody of the underlying asset, reliable logistics to verify inventory, and the risk of borrower defaults eroding token value. Addressing these issues will be critical for broader adoption and for attracting a wider array of investors and corporate users.
Why it matters
The evolution of tokenized commodities signals a shift toward blockchain-enabled financing for real-world assets. By linking digital tokens to physical gold, silver and oil, providers aim to lower entry barriers, create new yield opportunities, and potentially reshape how businesses secure inventory and manage risk. Successful navigation of custody and logistical challenges could unlock a multi-billion-dollar market and integrate tokenized assets into mainstream commodity trading.
