The market capitalization of tokenized commodities reached $5.55 billion at the end of March 2026 according to CoinGecko data - up from $1.43 billion in early 2025. Gold-backed tokens from Paxos and Tether accounted for nearly 90% of that growth. However, the competitive landscape is shifting as asset issuers begin deploying physical reserves to generate yield rather than simply storing them in vaults.
Gold Yield and Silver Leases for Token Holders
Paxos Labs launched PAXGy, a token backed by PAX Gold (PAXG) whose reserves are lent to institutional borrowers. Token holders can accumulate additional gold holdings because loan interest is paid directly in troy ounces. Paxos is also considering PAXGy-collateralized lending options as a next step.
Theo took a similar step with thSLVR. The product passes institutional silver lease revenue through to token holders while maintaining market price exposure to the metal.
Theo Chief Investment Officer Iggy Ioppe projects the tokenized commodities market will be worth tens of billions of dollars within five years. Within a decade, Ioppe expects its value to surpass $100 billion.
Crude Oil Crosses Over to Solana
Energy commodities are now entering the blockchain as well. Energy Substantiation (EnSub) expanded its WTIC token to Solana on October 2, 2026, following an earlier launch on Ethereum. Each WTIC token represents one barrel of West Texas Intermediate (WTI) crude oil backed by verified physical inventory.
EnSub is also developing natural gas and Brent crude tokens. EnSub Chief Executive Officer JP Thieriot estimates oil tokens could represent a quarter of the global oil market within ten years.
Its target market includes individual investors, family offices, financial institutions, refineries seeking inventory financing, and corporations looking for fast-settlement assets.
Why Oil Is More Complex Than Precious Metals
Bringing crude oil on-chain faces physical hurdles not seen with gold or silver. Precious metals are easy to store in vaults without degradation, whereas crude oil requires costly tanks and transportation. These storage and logistical challenges make yield-bearing oil tokens more difficult to establish than gold or silver.
For crypto market participants, this commodities expansion provides real-world hedging options beyond digital coin volatility. Success hinges on physical audit transparency - because unlike token code on a screen, a barrel of crude oil still needs a real tank to prove its worth.
Reported by CoinDesk.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
