Tokenized Commodities Look Beyond Gold

Tokenized commodities could grow from a market dominated by gold into a broader system for financing metals, trading energy and borrowing against physical assets, according to executives at Paxos Labs, Theo and Energy Substantiation. Putting commodities on blockchain networks should connect investors seeking exposure and income with businesses that need inventory financing, opening markets traditionally reserved for large institutions.

The starting point remains modest, with tokenized commodities’ market capitalization reaching $5.55 billion at the end of March 2026, up from $1.43 billion at the beginning of 2025, according to CoinGecko. Gold-backed tokens from Paxos and Tether accounted for almost 90% of that growth. Paxos Labs is now betting that lending can unlock the next stage. Its PAXGy token is backed by PAX Gold reserves deployed to institutional borrowers, allowing holders to potentially increase their gold holdings while retaining price exposure as underlying lending rates are paid back in ounce terms.

Silver and Energy Expansion

Silver offers another route into the financing market. Theo’s thSLVR product passes income from institutional silver leases to holders while maintaining exposure to the metal’s price. Theo Chief Investment Officer Iggy Ioppe sees growth coming from existing commodity owners and users, forecasting a tokenized commodities market worth tens of billions within five years and more than $100 billion within a decade.

Oil presents a larger logistical challenge alongside a substantial opportunity. Energy Substantiation expanded its WTIC token from Ethereum to Solana on October 2, with each token representing one barrel of West Texas Intermediate crude backed by verified physical inventory. Co-founder and CEO JP Thieriot stated that natural gas and Brent tokens are under development, predicting oil tokens could account for a quarter of the oil market within 10 years, though custody, logistics and borrower risk remain hurdles for the sector.

Key Facts

• Tokenized commodities market capitalization reached $5.55 billion at the end of March 2026, up from $1.43 billion at the start of 2025.
• Gold-backed tokens from Paxos and Tether accounted for nearly 90% of tokenized commodity growth.
• Energy Substantiation expanded its WTIC token representing West Texas Intermediate crude to Solana on October 2.
• Theo Chief Investment Officer Iggy Ioppe forecasts a tokenized commodities market worth over $100 billion within a decade.