Tokenized commodities look beyond gold as lending and oil open new markets
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
AI-generated summary based on the linked source; not independently verified. This is not investment advice. Verify market-moving details at the original publisher before acting. See our editorial policy, AI content policy, and financial disclaimer.
Summary
Tokenized commodities, initially dominated by gold and silver, are expanding into lending markets and energy sectors like oil and natural gas. Companies such as Paxos Labs, Theo, and Energy Substantiation (EnSub) are developing tokens backed by physical assets, including gold lending products and oil tokens on Ethereum and Solana. These executives see significant growth potential but recognize ongoing challenges in custody, logistics, and borrower risk.
Why it matters
The source highlights that tokenized commodities could transform traditional markets by facilitating financing, trading, and borrowing against physical assets on blockchain networks. This could connect a broader range of investors and businesses beyond large institutions, potentially increasing market access and liquidity.
Key context
The market capitalization of tokenized commodities grew from $1.43 billion at the start of 2025 to $5.55 billion by March 2026, mainly driven by gold-backed tokens. Lending is identified as a key growth area, with Paxos’ PAXGy token allowing holders to potentially increase gold holdings via lending returns. Silver is seen as a logical next step due to its industrial demand and leasing market. Oil tokenization faces logistical challenges but is developing through EnSub’s WTIC and upcoming natural gas and Brent tokens.
Key numbers and entities
Market cap of tokenized commodities reached $5.55 billion by March 2026, up from $1.43 billion in early 2025. Paxos, Theo, and EnSub are leading projects mentioned. Paxos’ PAXGy token is backed by PAX Gold (PAXG). Theo’s silver token, thSLVR, is supported by $40 million in active leases. EnSub expanded its oil token WTIC from Ethereum to Solana on October 2, 2026.
What remains unclear
The source does not specify detailed adoption rates or user demographics for these tokens beyond general investor categories. Specific custody and logistics solutions needed for energy tokens remain undefined. The timeframe and mechanisms for borrower risk mitigation and default management in lending tokens are not detailed.