Tokenized Commodities Market Expands Beyond Gold as Industry Eyes Energy and Silver Financing
The market for tokenized commodities, which represent ownership of physical assets like gold, silver, and oil on blockchain networks, has grown to $5.55 billion as of the end of March 2026. While gold-backed tokens currently dominate this sector, industry executives are increasingly focused on expanding into silver leasing and energy financing. Proponents argue that these blockchain-based tokens can provide individual and institutional investors with access to inventory financing and yield-generating opportunities that were previously restricted to large financial institutions. However, the sector faces logistical challenges, particularly regarding the custody and settlement of energy assets, and market participants warn that lending returns are not guaranteed.
Key points
- Tokenized commodities market capitalization grew from $1.43 billion in early 2025 to $5.55 billion by the end of March 2026.
- Gold-backed tokens from Paxos and Tether account for approximately 90% of the market's growth to date.
- Energy Substantiation expanded its WTIC oil token from Ethereum to Solana on October 2, 2026.
- Industry executives are developing new products for silver leasing and energy hedging to attract institutional and corporate treasury interest.
- Forecasts for the sector's long-term growth vary, with some projections estimating a market value exceeding $100 billion within a decade.
What happened
The tokenized commodities sector is shifting from a gold-centric model toward a broader ecosystem that includes silver and energy assets. According to data from CoinGecko, the market reached a capitalization of $5.55 billion by the end of March 2026, a significant increase from the $1.43 billion recorded at the start of 2025.
Companies such as Paxos Labs, Theo, and Energy Substantiation are working to integrate physical assets into blockchain networks. These efforts aim to provide investors with exposure to commodities while simultaneously offering businesses new avenues for inventory financing.
Market move
Gold-backed tokens remain the primary driver of the market, representing nearly 90% of the growth observed since 2025. Paxos Labs is currently utilizing its PAXGy token to facilitate lending, allowing holders to potentially increase their gold holdings through interest payments.
In the silver market, Theo has introduced the thSLVR product, which passes income from institutional silver leases to token holders. Meanwhile, the energy sector is seeing new developments, such as Energy Substantiation's expansion of its WTIC token—representing barrels of West Texas Intermediate crude—from Ethereum to Solana on October 2, 2026.
Why it moved
The expansion is driven by a push for greater market access and efficiency. Executives suggest that tokenization can connect investors seeking income with businesses that require working capital, effectively democratizing access to commodity financing that was historically limited to large institutions.
However, the transition is not without challenges. While silver is viewed as a natural successor to gold due to existing leasing markets, energy tokens face logistical hurdles related to the storage, transport, and continuous movement of physical inventory. Industry leaders remain divided on the speed at which energy-based tokens can achieve widespread adoption.
Key numbers
$5.55 billion: The total market capitalization of tokenized commodities as of the end of March 2026.
