Tokenized commodities reach US$5.55 billion, functions expand
RWA Signal Insight
CommoditiesThe market capitalization of tokenized commodities surged to US$5.55 billion by March 2026, marking a significant increase from US$1.43 billion at the start of 2025. Gold-backed tokens from Paxos and Tether currently dominate this sector, representing nearly 90% of the total market growth. Beyond simple price tracking, developers are now integrating complex financial functions such as lending, rental income, and inventory financing into these digital assets. Paxos Labs has introduced PAXGy, which generates yield through gold-denominated loans to institutional borrowers, while Theo has launched thSLVR to provide rental income from silver leasing. Meanwhile, Energy Substantiation (EnSub) is testing the tokenization of oil with its WTIC token, which represents one barrel of WTI crude oil on the Ethereum blockchain. These innovations aim to democratize access to commodity lending markets that were previously restricted to large institutional players. As the sector matures, Indonesia's Financial Services Authority (OJK) is actively drafting regulatory frameworks to govern the issuance, custody, and protection of tokenized real assets.
Key points
- Tokenized commodity market cap grew from US$1.43 billion to US$5.55 billion in 15 months.
- Paxos and Tether gold tokens account for nearly 90% of the total market growth.
- EnSub's WTIC token on Ethereum represents one barrel of WTI crude oil with physical backing.
- Indonesia's OJK is developing regulations for tokenized gold and other real-world assets.
Background
Tokenized commodities are digital representations of physical assets like gold, silver, or oil, recorded on a blockchain to provide fractional ownership and increased liquidity. These tokens are typically backed by physical reserves held by custodians, allowing investors to gain exposure to commodity price movements without the logistical burdens of physical storage. Newer models now incorporate yield-bearing mechanisms, such as lending or leasing the underlying metal or energy inventory to institutional counterparties.