Tokenized Commodities Near $4b, As Gold Extends All-time Rally

Tokenized commodities are increasing amid growing investor demand for more accessible onchain financial products, following new all-time highs for gold and silver.

Blockchain-based tokenized commodities are nearing the $4 billion milestone, following new all-time highs reached by the world's leading precious metals.

Gold, silver and platinum hit record highs on Friday, with spot gold rising as high as $4,530 per ounce, TradingView data shows. Silver, currently not a major contributor to the tokenized commodities market, briefly touched an all-time high of $74.56 per ounce.

Tokenized commodities rose 11% in the month leading to Friday, reaching $3.93 billion, according to data aggregator RWA.xyz. Tether Gold (XAUt) was listed as the largest tokenized commodity, worth $1.74 billion, followed by Paxos Gold (PAXG) at $1.61 billion.

Tokenized precious metals can be transferred and traded onchain outside traditional market hours, though pricing, liquidity and redemption remain tied to legacy infrastructure.

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Tokenized commodities are part of the wider real-world asset (RWA) sector, which involves issuing blockchain-based representations of traditional assets to enable faster settlement and fractionalized ownership.

Investment bank Standard Chartered projects the tokenized RWAs (excluding stablecoins) to surge to $2 trillion by 2028, with $250 billion predicted to flow into “less liquid” investments such as private equity and commodities.

Related: US financial markets ‘poised to move on-chain’ amid DTCC tokenization greenlight

Ethereum is emerging as the most popular blockchain network for tokenized RWAs.

Source: CoinTelegraph