The marriage of precious metals and blockchain technology has reached an inflection point in 2026. What began as an experimental concept has evolved into a multi-billion dollar market that fundamentally changes how investors gain exposure to gold, silver, and other metals. The tokenized gold market alone has surpassed $5.1 billion in market capitalization, while the broader tokenized commodities sector now exceeds $4.4 billion in total value locked (TVL).
This transformation is driven by a powerful convergence: gold prices hovering near $5,000 per ounce, silver trading above $90 per ounce after a stunning 140%+ rally in 2025, and blockchain infrastructure that finally delivers institutional-grade reliability. For investors seeking safe-haven assets amid geopolitical uncertainty, tokenized metals offer the best of both worlds—the timeless value of physical commodities with the efficiency, accessibility, and programmability of digital assets.
This guide explores everything you need to know about tokenized metals in 2026: the major players, onchain markets, DeFi opportunities, perpetual futures, and what the future holds for this rapidly evolving market.
The Tokenized Gold Market
Market Overview
Tokenized gold remains the dominant category within tokenized metals, with two players controlling approximately 89-95% of the market: Tether Gold (XAUT) and Pax Gold (PAXG).
| Token | Market Cap | Price | 24h Volume | Blockchain(s) |
|---|---|---|---|---|
| Tether Gold (XAUT) | ~$2.6B | ~$5,100 | $500M+ | Ethereum, Avalanche |
| Pax Gold (PAXG) | ~$2.0B | ~$5,118 | $600M+ | Ethereum |
| Kinesis Gold (KAU) | ~$400M | ~$164 | $1.6M | Kinesis Blockchain |
| Matrixdock Gold (XAUM) | ~$66M | N/A | N/A | BNB Chain, Ethereum, Sui |
The sector's growth has been explosive: tokenized gold volumes reached $178 billion in 2025, outpacing all but one U.S.-listed gold ETF. This represents a 227% year-over-year increase from 2024, when the market cap stood at roughly $1 billion.
Tether Gold (XAUT): Market Leader
XAUT has emerged as the largest tokenized gold asset, backed by more than 375,000 troy ounces of LBMA-certified gold stored in Swiss vaults—representing over 12.7 metric tons of physical bullion. The token is issued by TG Commodities, a Tether subsidiary, and each token represents one fine troy ounce of gold.
Source: Dune Tether Gold (XAUt)
Key features:
- 75% of 2025 tokenized gold trading volume
- Yield-bearing options available through DeFi integration
- Multi-chain availability (Ethereum, Avalanche)
- Direct ownership rights to allocated physical gold with serial-number verification
The token has gained particular attention during periods of geopolitical stress. In January 2026, XAUT broke through $5,100 amid what analysts called a “triple threat” crisis involving Greenland sovereignty tensions, Denmark’s liquidation of U.S. Treasury holdings, and Japanese fiscal instability—driving a nearly 10% gain since the start of the year.
Pax Gold (PAXG): The Institutional Choice
PAXG, issued by Paxos Trust Company under New York Department of Financial Services (NYDFS) oversight, is the second-largest tokenized gold asset at approximately $2 billion in market capitalization with a circulating supply of roughly 380,000 tokens.
Key advantages:
- Full regulatory compliance under NYDFS oversight
- Monthly independent audits
- Physical redemption available for bullion or cash
- Backed by London Good Delivery gold bars in LBMA-approved vaults
PAXG attracts a distinct market segment: institutions, asset managers, and compliance-focused investors who prioritize regulatory clarity. While trading volumes are typically lower than XAUT’s, the token sees stronger participation from entities that require transparent reporting frameworks.
Kinesis Gold (KAU)
Kinesis Gold operates on a unique model that transforms physical gold into a yield-bearing digital currency. Unlike XAUT and PAXG which represent one troy ounce, KAU represents one gram of gold. The platform offers a complete monetary system including a Kinesis Mastercard for spending gold anywhere the network is accepted, and passive yield from transaction fees within the Kinesis Monetary System.
Matrixdock Gold (XAUM)
Matrixdock Gold represents a newer entrant backed by Matrixport, a crypto financial services company. XAUM differentiates itself through multi-chain availability (BNB Chain, Ethereum, Sui) and integration with Matrixport's broader suite of crypto-native financial products.
How Tokenized Gold Works
The tokenization of physical gold follows a structured, multi-step approach designed to ensure transparency, security, and regulatory compliance:
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Acquisition and Custody: Physical gold is sourced and stored in audited vaults (typically in London, Switzerland, or Singapore) by institutional custodians like Brinks or Loomis, often with comprehensive insurance coverage. Each gold bar is assigned a unique serial number and undergoes verification to ensure it meets LBMA Good Delivery standards.
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Minting Tokens: Smart contracts on blockchains like Ethereum register ownership. Each token corresponds to a specific quantity of gold, typically one troy ounce for XAUT and PAXG, or one gram for KAU. The token maintains a cryptographic link to specific gold bars with verifiable serial numbers. This linkage is stored on-chain or in a verifiable off-chain database, allowing token holders to trace their ownership to specific physical assets.
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Price Oracles and Market Making: Token prices are maintained via oracle networks like Chainlink that track spot gold prices from multiple sources including COMEX, LBMA, and major bullion dealers. These oracles provide price feeds that enable automated market makers (AMMs) to maintain liquidity and allow for near-instant price discovery across decentralized exchanges.
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Redemption:Holders can redeem tokens for physical gold or cash value, though minimum redemption sizes often apply. For physical delivery, minimums typically start at one full gold bar (approximately 400 troy ounces). For cash redemption, smaller amounts are usually possible with fees ranging from 0.5% to 2% depending on the issuer and redemption method.
Tokenized Silver and Beyond
The Silver Surge
Silver has been one of the standout performers into 2026, with spot prices climbing sharply — breaking past $100 per ounce and reaching new record highs — after rallying more than 140% year‑over‑year in 2025 and continuing strong early gains in 2026 amid investor demand, supply deficits, and robust industrial consumption. Estimates of the total above‑ground market valuation for silver climbed into the trillions of dollars by late 2025, placing silver among the world’s most valuable traded assets alongside major equities and commodities
The tokenized silver market, while smaller than gold at approximately $420M in market cap, has shown steady growth. The sector is led by Kinesis Silver (KAG) at approximately $414M, followed by iShares Silver Trust tokenized exposure via Ondo at $21 million.
How Tokenized Silver Works
Tokenized silver assets aim to provide crypto users with direct exposure to silver prices without owning physical metal. They typically operate as: • Physically backed tokens: Each token is collateralized by physical silver stored in vaults. (Example: Kinesis Silver).  • ETF‑linked tokens: Blockchain representations of traditional financial silver ETFs (e.g., tokenized SLV via Ondo).  • Fractional or gram‑based tokens: Designed for smaller investors, offering ease of entry and on‑chain tradability (e.g., GRAMS). 
| Token | Market Cap | Note |
|---|---|---|
| Kinesis Silver (KAG) | ~$414M | Physically backed |
| iShares Silver Trust (SLVon) | ~$21M | ETF-linked |
| Silver rStock (SLVR) | ~$0.2M | Physically backed |
| Gram Silver Token (GRAMS) | ~$12M | Physically backed |
Kinesis Silver (KAG): Leading the Pack
Kinesis Silver operates on a unique model that transforms physical silver into a yield-bearing digital currency. Key features include:
- 1:1 backing by allocated, audited bullion in a global vaulting network
- Passive yield from transaction fees within the Kinesis Monetary System
- Spendable via Kinesis Mastercard anywhere the network is accepted
- Semi-annual independent physical audits by leading inspection specialists
Silver’s dual role as both a precious metal and industrial input (critical for solar panels, electronics, and medical devices) makes it particularly attractive for investors seeking diversification beyond pure monetary metals.
Emerging Metals: Platinum, Palladium, and Beyond
While gold and silver dominate current tokenization efforts, the infrastructure is being built for a broader commodity revolution:
Platinum: Critical for automotive catalytic converters and hydrogen fuel cells, platinum tokenization is gaining traction through platforms like Wealth99 and specialized protocols. Each token typically represents fractional ownership of LBMA-accredited platinum bars.
Palladium: Used extensively in automotive applications and green energy, tokenized palladium offers improved liquidity and faster settlement times for a traditionally illiquid market.
Industrial Metals: According to recent market reports, tokenized industrial metals like copper, lithium, nickel, and aluminum hold around $75 million in tokenized value as of 2025—positioning them as the next frontier for real-world asset tokenization.
Rare Earth Elements: Pilot programs are emerging for tokenized rare earths critical to EV batteries and renewable energy infrastructure, though regulatory and custody challenges remain.
The only platform to trade Platinum and Palladium onchain at the time is Ostium Labs.
Onchain Markets and Trading Platforms
Ethereum: The Dominant Chain
Ethereum remains the dominant chain for tokenized gold with PAXG and XAUT, benefiting from:
- Deep liquidity pools
- Established DeFi infrastructure (Uniswap, Aave, Compound)
- Institutional familiarity
- Chainlink oracle integration for reliable metals price feeds
EVM Chains Expansion
The tokenized metals market is increasingly multi-chain, with assets available across multiple networks:
- Avalanche: Low-fee alternatives for XAUT and the XAGx Silver Token, offering subnet-based scaling for institutional use cases.
- BNB Chain: Matrixdock Gold (XAUM) and Ondo expansion targeting the Asian market and Binance ecosystem users.
- Sui: Emerging tokenized commodity projects leveraging the Move programming language and parallel execution.
- Mantle: Ondo's $29M USDY integration for institutional treasury use cases.
Solana: The High-Throughput Alternative
Solana has emerged as a major hub for real-world asset tokenization, with total non-stablecoin RWA value surpassing $1 billion by early 2026. The network’s high throughput (sub-second finality) and low transaction costs make it ideal for tokenized commodities.
Ondo Finance on Solana: In January 2026, Ondo Finance launched over 200 tokenized assets on Solana, including stocks, ETFs, bonds, and commodities. This expansion includes:
- Gold and silver ETF exposure (GLD, SLV equivalents)
- Commodity-linked instruments
- 24/7 trading availability
- Near-instant settlement
Ondo now accounts for over 65% of all tokenized RWAs on Solana, with a platform TVL exceeding $460 million and cumulative trading volume surpassing $6.8 billion since its September 2025 debut.
Other notable Solana Projects:
- DeFiCarrot: Leveraged TURBOGOLD products
- xStocksFi: $GLDx for onchain gold exposure
Perpetual Futures for Metals
Binance Gold Perpetuals
In January 2026, Binance launched a landmark product: TradFi Perpetual Contracts for gold (XAUUSDT) and silver (XAGUSDT). This marks a significant bridge between traditional finance and crypto infrastructure.
Contract specifications:
- Settlement: USDT-margined
- Leverage: Up to 50x
- Trading: 24/7 availability
- Pricing: Index price from multiple vendors, mark price with EWMA smoothing during off-hours
- Regulation: Offered through Nest Exchange Limited, regulated by Abu Dhabi Global Market’s FSRA
Initial market reaction has been robust—analysts estimate commodity-linked derivatives already represent approximately 15% of Binance’s total futures volume within days of their debut. During the beta period, over 80,000 users joined the waitlist, with XAU/USD alone generating over $100 million in single-day volume.
Important: These contracts do NOT represent ownership of physical metals—they are purely price-tracking derivatives.
Other CEX Offerings
Multiple centralized exchanges now offer precious metals perpetuals:
| Exchange | Products | Max Leverage | Notes |
|---|---|---|---|
| Binance | XAUUSDT, XAGUSDT | 50x | FSRA-regulated entity |
| MEXC | XAU/USDT, XAG/USDT | 50x | Zero-fee promotions |
| Gate.io | Gold/Silver perps | 50x | 24/7 trading |
| BingX | XAUUSDT, XAGUSDT | 50x | PAXG integration |
| Bitunix | XAG/USDT | 20x | Launched January 2026 |
DeFi Perpetual Platforms
The decentralized perpetuals market has exploded, with total volume hitting $1 trillion in Q4 2025 alone.
Hyperliquid Perps: Gold, Silver, Copper
Hyperliquid has quickly established itself as a powerhouse in decentralized perpetual futures trading. With 69% of all daily active users on DEXs and $40.7 billion in weekly trading volume, the platform also maintains $9.57 billion in open interest, making it one of the most liquid and active venues in the space.
At the heart of Hyperliquid is HyperCore, the platform’s custom Layer-1 chain, designed for speed and reliability: • Sub-second transaction finality • Throughput of up to 200,000 orders per second • Fully on-chain order book • MetaMask integration for seamless trading
What really sets Hyperliquid apart is its HIP-3 framework, which allows permissionless listing of traditional finance assets, including commodities. This has opened the door for metals markets to thrive on a decentralized platform: • Gold token contracts like PAXG and XAUT have become major players, consistently ranking in the top ten by 24-hour trading volume. • Silver perpetual contracts are seeing massive activity, frequently surpassing $1 billion in daily trading volume. • Copper contracts are also available, giving traders access to industrial metals alongside precious metals.
This expansion into tokenized commodities highlights Hyperliquid’s vision: to create a fully decentralized marketplace for both crypto and traditional finance derivatives, bringing liquidity, speed, and accessibility to markets that were once limited to institutions.
Ostium Perps: Gold, Silver, Copper, Palladium, Platinum
Ostium Labs is pioneering the next generation of RWA-focused perpetual markets, giving traders decentralized access to real-world assets like precious and industrial metals.
The platform’s infrastructure is designed for speed, transparency, and efficiency, supporting a growing suite of metals perpetual contracts: • Gold – A cornerstone for traders seeking stable, high-liquidity precious metals exposure. • Silver – One of the most actively traded industrial and precious metals on the platform. • Copper – Providing exposure to industrial metals and global economic trends. • Palladium – Enabling targeted trading in high-demand automotive and tech applications. • Platinum – Offering access to another key precious metal market with strong industrial use.
Ostium’s approach allows these real-world asset (RWA) markets to exist fully on-chain, giving users the benefits of decentralized liquidity, transparent pricing, and permissionless access. By bridging traditional finance commodities with DeFi, Ostium is creating a new way for traders to speculate, hedge, and gain exposure to physical assets—all without intermediaries.
DeFi Opportunities for Tokenized Gold
One of the most compelling aspects of tokenized gold is its programmability within decentralized finance (DeFi). Unlike traditional gold investments that sit idle in vaults or brokerage accounts, tokenized gold can generate yield, serve as collateral, and participate in broader DeFi strategies. This section explores real DeFi opportunities available to tokenized gold holders.
Liquidity Provision on Decentralized Exchanges
Tokenized gold like PAXG (Pax Gold) and XAUt (Tether Gold) is actively traded on decentralized exchanges such as Uniswap v2 and v3, Curve, Fluid, Balancer, etc where liquidity providers (LPs) can earn trading fees by supplying capital to pools like PAXG/USDC or PAXG/WETH. • Risks: Impermanent loss if prices move outside the selected range, and Ethereum gas costs can materially impact profitability. • Earning potential: Yield is derived from trading fees proportional to pool volume, and rewards can be modest or variable depending on activity. 
At the time of writing, the 30‑day average APY for the most actively traded tokenized gold pools on Uniswap ranged from 10% to 25%, reflecting strong trading activity and concentrated liquidity positions.
Lending and Borrowing Protocols
XAUT can serve as isolated collateral on Aave, letting users borrow funds against their tokenized gold without putting their other assets at risk.
Staking With Falcon Finance XAUt Vault
Some protocols like Falcon Finance have launched staking products for tokenized gold (e.g., XAUt staking vaults), offering yield in synthetic stable assets (like USDf) for locking tokenized gold for defined periods. 
- How it works: Users lock XAUt in a vault and receive periodic yield paid in a synthetic or diversified asset depending on protocol design.
- Yield expectations: Reported vault strategies target mid‑single digit yields (e.g., 3‑5% APR), but actual incentives and risk profiles vary by protocol and market conditions. 
- Risk considerations: Smart contract risk and protocol‑specific token economics are key factors.
Real-World Asset (RWA) Market Context
The Broader RWA Boom
Tokenized metals exist within the rapidly expanding Real-World Asset tokenization sector. As of January 2026:
- Total RWA TVL: Exceeds $21 billion (up from ~$17 billion at end of 2025)
- Including stablecoins: Over $317 billion in tokenized real-world value
- RWA holders: Nearly 600,000 direct holders of tokenized assets (2x growth from 2024)
- Projections: The sector could reach $2 trillion by 2030 according to McKinsey
Tokenized Commodities Breakdown
Within the RWA universe, tokenized commodities have grown to approximately $4.48 billion in market cap as of early 2026:
| Category | Market Cap | Dominance |
|---|---|---|
| Tokenized Gold | ~$3.5-$4B | ~85% |
| Tokenized Silver | ~$420M | ~6% |
| Industrial Metals | ~$75M | ~1.5% |
| Other Commodities | ~$200M | ~7.5% |
Benefits of Tokenized Metals
Accessibility
Fractional ownership allows investors to own as little as $1 worth of gold. 24/7 global trading eliminates market hours restrictions. No storage requirements as custodians handle physical security. Low minimum investments democratize access to precious metals that were previously available only to wealthy investors or through expensive ETFs.
Liquidity
Near-instant settlement replaces the T+2 settlement of traditional markets. Deep exchange liquidity on major platforms enables large trades without significant slippage. Cross-chain transferability allows assets to move between networks. DeFi integration provides additional utility beyond simple holding.
Transparency
Blockchain-verified ownership creates an immutable record of transactions. Regular third-party audits verify physical backing. On-chain proof of reserves allows anyone to verify token supply matches gold reserves. Immutable transaction history prevents fraud and enables easy auditing.
Utility
Tokenized gold can be used as collateral in DeFi lending protocols, enabling borrowing without selling. Yield generation through staking or liquidity provision creates passive income. Programmable integration with smart contracts enables automated strategies. Cross-border transfers occur without intermediaries, reducing costs and delays.
Risks to Consider
Custody and Counterparty Risk
Reliance on centralized custodians for physical storage creates single points of failure. Issuer solvency concerns exist if the issuing entity faces financial difficulties. Audit integrity dependence requires trust in third-party auditors. Redemption limitations including minimums and geographic restrictions may prevent immediate physical access.
Technical Risks
Smart contract vulnerabilities have resulted in billions in losses across DeFi. Blockchain network congestion or outages can prevent transactions. Oracle manipulation or failure can cause incorrect pricing. Bridge exploits for multi-chain tokens represent a significant attack vector.
Market Risks
Price volatility in underlying metals affects token value. Liquidity constraints during market stress can prevent exit. Depegging from spot prices can occur during extreme conditions. Leverage-related liquidation for perps can result in total loss.
Regulatory Uncertainty
Evolving classification of tokenized commodities creates compliance challenges. Jurisdictional variations in requirements affect global accessibility. AML/KYC enforcement may impose additional requirements. Potential restrictions on DeFi integration could limit utility.
Future Outlook
Market Projections
The tokenized metals and broader RWA (real‑world asset) tokenization markets are positioned for continued expansion as on‑chain infrastructure, institutional participation, and real‑world asset integrations deepen. Recent data shows tokenized commodities on the rise, led by gold and supported by growing interest in other metals.
| Metric | 2024 | 2025 | 2026 (Proj.) | 2030 (Est.) |
|---|---|---|---|---|
| Tokenized Gold MC | $1B | $3.3B | $4-7B | $20B+ |
| Annual Trading Volume | $50B | $178B | $250B+ | $1T+ |
| RWA TVL (Commodities) | $500M | $4.3B | $10B | $100B+ |
Estimates for early years 2024 represent nascent tokenized markets where standardized reporting was limited.
Conclusion
Tokenized metals represent one of the most compelling intersections of traditional finance and blockchain innovation. With over $5 billion in tokenized gold alone, this is no longer an experiment, it's a functioning market that offers genuine advantages over traditional precious metals investment.
For investors, the appeal is clear: own gold or silver with the click of a button, trade 24/7 without market hours constraints, use holdings as DeFi collateral, and avoid the headaches of physical storage. For traders, perpetual futures provide leveraged exposure to metals without expiration dates or physical delivery.
However, this market isn't without risks. Custody dependence, smart contract vulnerabilities, regulatory uncertainty, and liquidity constraints during stress periods all warrant careful consideration. Due diligence on issuers, audits, and redemption mechanisms remains essential.
As we move deeper into 2026, the infrastructure continues to mature. Hyperliquid's dominant DEX platform, Ondo's expansion to Solana, and the broader RWA boom all point toward a future where the distinction between traditional and digital commodity markets becomes increasingly blurred.
The $32 trillion gold market is going onchain. Whether you're a long-term holder seeking safe-haven exposure or a trader looking to capitalize on volatility, tokenized metals offer tools that simply didn't exist a few years ago. The future of commodities is being written on the blockchain, and it's happening now.
