Blockchain-based tokenized commodities backed by precious metals like gold and silver are approaching a $4 billion market cap, fueled by strong demand for on-chain safe-haven assets amid rising traditional metal prices.
The market capitalization of tokenized commodities —digital assets representing physical metals such as gold and silver on blockchain— is nearing a record $4 billion, reflecting growing investor interest in real-world assets (RWAs) that combine traditional safe-haven exposure with on-chain liquidity. Major components of this segment include tokens like Tether Gold (XAUt) and Paxos Gold (PAXG), which together account for the bulk of the market value.
This surge in on-chain commodity assets comes amid all-time highs in the prices of precious metals in traditional markets, where gold has climbed above $4 500 per ounce and silver has also reached new record levels, driven by expectations of U.S. Federal Reserve rate cuts, geopolitical uncertainty, and safe-haven demand.
Tokenization allows these metals to be traded directly on blockchain networks, enabling greater accessibility, fractional ownership and seamless settlement without relying solely on traditional financial intermediaries. This has attracted participants seeking refuge from market volatility while remaining within the digital asset ecosystem.
Tokenized gold and silver gain traction in risk-off market conditions
Despite broader crypto market volatility, tokenized gold and silver have outperformed more traditional crypto assets, as investors rotate capital into these on-chain representations of hard assets that historically serve defensive roles during risk-off environments.
The growth of tokenized commodities also reflects a broader trend in the adoption of real-world assets on blockchain, as institutional and retail investors seek new ways to access conventional markets through decentralized technologies. Tokenization offers transparency, fractional liquidity and round-the-clock trading that extend beyond the limitations of legacy systems.
Overall, the rising market cap of tokenized commodities signals increasing acceptance of RWAs in the digital asset space, even as traditional markets deliver record prices for precious metals — underscoring a convergence between legacy asset demand and blockchain-enabled finance.
