Putting commodities on blockchain networks should do more than make them easier to buy, the executives say. It could connect investors seeking exposure and income with businesses that need inventory financing, opening markets traditionally reserved for large institutions
The starting point remains modest. Tokenized commodities’ market capitalization reached $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
Tokenized commodities are blockchain-based tokens that represent ownership of, or exposure to, physical assets such as gold, silver and oil
Paxos Labs is betting that lending can unlock the next stage
Its PAXGy token is backed by PAX Gold PAXG$4,183.26, 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 in an interview. Gold lending has historically required scale and relationships unavailable to many investors, he said
Kotecha sees demand from individuals, family offices and institutions, with borrowing against PAXGy a possible next step. Lending returns are not guaranteed, and borrower defaults could erode the token’s value
Silver offers another route into that 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: institutions seeking productive collateral, refiners financing inventory and corporate treasuries seeking assets that settle quickly
Silver is “the natural second” after gold, he said, citing industrial demand and an established leasing market, although greater volatility and a tighter supply of available metal complicate the opportunity
Ioppe forecasts a tokenized commodities market worth tens of billions within five years and more than $100 billion within a decade. Within 15 years, he expects tokenization to become part of ordinary commodity settlement and financing
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 (WTI) crude backed by verified physical inventory, according to its announcement
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
The executives differ on how quickly energy can follow metals. Ioppe argued that storage and transport make income-generating energy tokens harder to build. Thieriot said “verifiable inventory, workable custody and settlement” are essential for commodities continuously in motion
Expansion will therefore depend on connecting tokens to reliable physical markets, and giving owners a compelling reason to use them
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