Tokenized commodities are closing in on a major milestone as soaring precious metal prices push investor interest toward blockchain-based alternatives. With gold, silver and platinum touching fresh all-time highs, the value of commodities represented onchain has climbed sharply, highlighting how traditional markets and crypto infrastructure are becoming increasingly intertwined.
The total value of tokenized commodities now stands just below $4 billion, reflecting renewed demand for digital financial products that offer easier access, round-the-clock trading and fractional ownership of real assets.
Precious metals rally fuels onchain growth
The rally in global commodities markets has played a central role in driving tokenized asset growth. Gold surged to a new record on Friday, briefly touching $4,530 per ounce, according to TradingView data. Silver followed suit, climbing to an all-time high of $74.56 per ounce, while platinum also posted record levels.
Although silver is not yet a dominant asset in the tokenized commodities market, the surge across precious metals has lifted overall sentiment and valuations. Investors seeking exposure to these assets are increasingly exploring tokenized versions that can be transferred and traded on blockchain networks without being restricted by traditional market hours.
This trend has helped tokenized commodities grow by 11 percent over the past month, pushing the sector’s total market value to approximately $3.93 billion, according to data from RWA.xyz.
Tether Gold and Paxos Gold lead the market
Gold-backed tokens continue to dominate the tokenized commodities landscape. Tether Gold, also known as XAUt, is currently the largest tokenized commodity, with a market value of around $1.74 billion. Paxos Gold, or PAXG, follows closely at $1.61 billion.
Both tokens are backed by physical gold stored in secure vaults and are designed to track the spot price of gold. These assets allow investors to gain exposure to bullion without dealing with storage, insurance or logistics. Tokens can be moved across wallets, used in decentralized finance applications or traded on supported platforms at any time.
Despite these advantages, tokenized precious metals still rely heavily on traditional financial infrastructure. Pricing, liquidity and redemption remain linked to legacy systems, which can limit how independent these assets are from conventional markets.
Tokenized commodities within the broader RWA boom
Tokenized commodities form part of the expanding real-world asset sector, which involves issuing blockchain-based representations of traditional financial instruments such as bonds, equities, private credit and commodities.
The appeal of RWAs lies in faster settlement, improved transparency and the ability to divide high-value assets into smaller units. This opens doors for retail and institutional investors who may have been excluded from certain markets due to high capital requirements.
Tokenized assets, network asset value. Source: RWA.xyz
Standard Chartered has projected that tokenized real-world assets, excluding stablecoins, could reach a value of $2 trillion by 2028. The bank estimates that around $250 billion of this growth could come from less liquid asset classes, including private equity and commodities, signaling strong long-term potential for tokenized metals and similar products.
Ethereum dominates RWA tokenization
Ethereum has emerged as the leading blockchain for real-world asset tokenization, capturing the majority of market share. According to RWA.xyz, Ethereum accounts for about 65 percent of the tokenized RWA market, valued at roughly $12.7 billion.
BNB Chain ranks second with a 10.5 percent share, equivalent to about $1.85 billion. Other networks are also experimenting with RWA issuance, but Ethereum’s established infrastructure, developer ecosystem and institutional familiarity have helped it maintain a clear lead.
The growth of tokenized assets has the potential to boost blockchain activity and increase transaction fees, particularly on Ethereum. However, onchain data suggests that RWAs still represent a relatively small portion of overall blockchain usage when compared with stablecoins, decentralized exchanges and retail token trading.
Onchain activity still led by stablecoins and trading
While RWA tokenization is expanding, it has yet to become a primary driver of network revenue. Over the past 30 days, Ethereum ranked fourth in total transaction fees, generating around $11.41 million, according to data from crypto intelligence platform Nansen.
Tron topped the list with $29.5 million in fees, largely due to its heavy stablecoin usage. BNB Chain and Solana placed second and third, supported by strong activity in token launches and retail trading.
This gap highlights both the opportunity and the challenge for tokenized commodities. As adoption grows, these assets could play a larger role in blockchain economies, but for now, they remain a developing segment within a market still dominated by payments and speculative trading.
A bridge between old and new markets
The rise of tokenized commodities near the $4 billion mark underscores a broader shift in how investors access traditional assets. As precious metals continue to set records, blockchain-based representations are offering a new way to participate in these markets with greater flexibility.
While structural ties to legacy systems remain, ongoing growth in RWAs suggests that tokenized commodities could become a lasting bridge between conventional finance and onchain innovation.
