Tokenized commodities eye next phase of growth as gold, silver and oil move onchain

The tokenized commodities market is evolving beyond gold-backed assets to include industrial metals and energy, reaching a market capitalization of $5.55 billion by March 2026. While gold-backed tokens from Paxos and Tether currently represent nearly 90% of this sector, firms like Theo and Energy Substantiation are introducing new products for silver and oil. These platforms aim to democratize access to commodity financing, allowing investors to earn yield through lending and leasing arrangements that were previously restricted to large institutions. Paxos is leveraging its PAXGy token to allow holders to increase gold exposure through lending, while Theo’s thSLVR product distributes income from institutional silver leases. Energy Substantiation has expanded its WTI crude oil token, WTIC, to the Solana blockchain to facilitate inventory financing and hedging for energy market participants. This shift toward productive, yield-bearing assets is expected to drive the market toward a projected $100 billion valuation within a decade. The growth of this sector depends on integrating blockchain tokens with reliable physical supply chains, custody solutions, and established commodity settlement markets.