Tokenized Commodities Are Expanding Beyond Gold — and the Next Wave Is Already Here
Tokenized commodities are expanding beyond gold — and executives see the next wave coming from lending, silver, and even oil.
Gold and Silver Lead the Way
The tokenized commodities market hit $5.55 billion in market cap at the end of March 2026, up from $1.43 billion at the start of 2025, according to CoinGecko data. Gold-backed tokens from Paxos and Tether accounted for almost 90% of that growth. But the real opportunity isn't just tracking commodity prices — it's putting physical assets to work.
Paxos Labs is betting that lending can unlock the next stage. Its PAXGy token is backed by PAX Gold, with reserves deployed to institutional borrowers. Each token is designed to become redeemable for more PAXG as underlying lending rates are paid back in ounce terms, allowing holders to potentially increase their gold holdings while retaining price exposure. "The big proposition is access," co-founder Bhau Kotecha told CoinDesk. Gold lending has historically required scale and relationships unavailable to many investors.
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: institutions seeking productive collateral, refiners financing inventory, and corporate treasuries seeking assets that settle quickly. Ioppe forecasts a tokenized commodities market worth tens of billions within five years and more than $100 billion within a decade.
The Oil Test
Oil presents a larger logistical challenge — and, in EnSub's view, a substantial opportunity. The company expanded its WTIC token from Ethereum to Solana on Oct. 2. Each token represents one barrel of West Texas Intermediate crude backed by verified physical inventory. Co-founder and CEO JP Thieriot said natural gas and Brent tokens are under development. He expects demand from energy buyers hedging costs, investors seeking exposure, and suppliers needing working capital, predicting oil tokens could account for a quarter of the oil market within 10 years.
Why This Matters for You
Within 15 years, Ioppe expects tokenization to become part of ordinary commodity settlement and financing. For anyone in DeFi or crypto, this is a signal: the boundary between traditional finance and blockchain is dissolving fast. Tokenized commodities could open markets traditionally reserved for large institutions — and that means new opportunities for yield, collateral, and investment that didn't exist before. The question isn't whether this space grows, but whether you're positioned when it does.