Tokenized Commodities Expand Beyond Gold Into Lending, Silver and Oil

Tokenized commodities could grow from a gold-dominated niche into a wider system for financing metals, trading energy and borrowing against physical assets, according to executives at Paxos Labs, Theo and Energy Substantiation. Market capitalization hit $5.55 billion by the end of March 2026, up from $1.43 billion at the start of 2025, per CoinGecko. Gold tokens from Paxos and Tether drove almost 90% of that growth. Executives say the goal is linking investors seeking income with businesses that need inventory financing, a space once limited to large institutions.

Gold Lending With Paxos PAXGy

Paxos Labs’ PAXGy token is backed by PAX Gold, with reserves lent to institutional borrowers. Holders could gain more PAXG over time as lending rates are paid in ounces. Co-founder Bhau Kotecha said the main draw is access. Returns are not guaranteed, and borrower defaults could cut the token’s value.

Silver Tokens and Theo thSLVR

Theo’s thSLVR passes income from institutional silver leases to holders. Chief Investment Officer Iggy Ioppe calls silver the natural second step after gold, though volatility and tight supply add difficulty. He projects tens of billions within five years and over $100 billion within ten.

EnSub moved its WTIC token, representing one barrel of WTI crude backed by verified inventory, from Ethereum to Solana on Oct. 2. CEO JP Thieriot is developing natural gas and Brent tokens and expects oil tokens to reach a quarter of the market within ten years. Ioppe warns storage and transport make energy tokens harder.