Tokenized Precious Metals Surge Toward $4 Billion Milestone
KEY FACTS: As gold and silver prices reached new all-time highs on December 26, 2025, with spot gold surging to $4,530 per ounce and silver briefly hitting $74.56, the market for tokenized commodities approached the $4 billion milestone, climbing 11% in the prior month to $3.93 billion according to RWA.xyz data. Leading the sector were Tether Gold (XAUT), valued at approximately $1.74 billion, and Paxos Gold (PAXG) at $1.61 billion, both fully backed by physical bullion and offering investors blockchain-enabled accessibility, 24/7 trading, and fractional ownership amid growing demand for real-world assets (RWAs) that promise faster settlement and democratization of high-value commodities. This surge reflects broader trends in tokenization, with projections from Standard Chartered forecasting tokenized RWAs (excluding stablecoins) reaching $2 trillion by 2028, including significant inflows into commodities.
Source: Bitcoin News
Tokenized Precious Metals Surge Toward $4 Billion Milestone
The market for tokenized commodities, particularly precious metals like gold and silver, has approached the $4 billion mark, fueled by unprecedented all-time highs in physical commodity prices and growing investor appetite for digital, on-chain alternatives. On Friday, spot gold prices soared to a staggering $4,530 per ounce, marking yet another record in a year-long rally that has captivated global markets. Silver, often seen as gold's more volatile counterpart, briefly touched an all-time high of $74.56 per ounce, while platinum also reached new peaks. These surges have underscored the enduring appeal of precious metals as safe-haven assets amid ongoing geopolitical tensions, inflationary pressures, and shifting monetary policies.
Parallel to these physical market milestones, the tokenized versions of these commodities have seen remarkable growth. According to data from RWA.xyz, a leading aggregator for real-world asset (RWA) metrics, the total value of tokenized commodities climbed 11% in the month leading up to Friday, reaching $3.93 billion. This rapid expansion highlights a broader trend: investors are increasingly turning to blockchain-based representations of physical assets for greater accessibility, 24/7 trading, and fractional ownership.
Leading the pack in this digital commodities space are two prominent tokenized gold products. Tether Gold (XAUT), issued by the company behind the world's largest stablecoin USDT, commands a market value of approximately $1.74 billion. Closely trailing is Paxos Gold (PAXG), with a valuation of $1.61 billion. These tokens are fully backed by physical gold stored in secure vaults, allowing holders to own fractions of bullion without the logistical challenges of physical storage or delivery.
While silver has yet to make a significant dent in the tokenized commodities market, despite its impressive price performance, the dominance of gold-backed tokens reflects the metal's status as the premier store of value. Tokenized precious metals offer unique advantages over traditional investing, because they can be transferred and traded on blockchain networks outside conventional market hours, providing unparalleled flexibility. However, experts note that pricing, liquidity, and redemption processes remain anchored to legacy financial infrastructure, meaning these digital assets are not entirely decoupled from traditional systems.
This boom in tokenized commodities is part of a larger revolution in real-world asset tokenization. RWAs encompass blockchain-issued tokens representing everything from real estate and private equity to bonds and commodities. The sector promises faster settlement times, reduced intermediaries, and democratized access through fractionalization—allowing everyday investors to own a slice of high-value assets that were once reserved for institutions.
With these developments, the potential for growth is immense. Investment bank Standard Chartered has forecasted that tokenized RWAs (excluding stablecoins) could balloon to $2 trillion by 2028. Within this, around $250 billion is expected to flow into less liquid categories, including private equity and commodities. This projection shows the transformative impact tokenization could have on global finance, bridging the gap between decentralized blockchain ecosystems and trillion-dollar traditional markets.
Ethereum has emerged as the clear leader in hosting these tokenized assets, capturing a 65% market share with $12.7 billion in RWAs deployed on its network. BNB Chain follows in second place with 10.5%, or $1.85 billion. The dominance of Ethereum is no surprise, given its robust smart contract capabilities and established DeFi infrastructure, which facilitate seamless integration of RWAs.
Despite this progress, tokenization remains a niche within the broader crypto landscape. Blockchain activity driven by RWAs pales in comparison to dominant use cases like stablecoin transfers and fungible token trading. For instance, over the past 30 days, Ethereum generated $11.41 million in transaction fees, ranking fourth behind networks like Tron ($29.5 million), which thrives on stablecoin dominance, and BNB Chain and Solana, popular for retail trading and token launches.
The surge in tokenized commodities coincides with a broader migration of capital toward hard assets. As central banks continue aggressive gold purchases, geopolitical risks persist, and expectations of looser monetary policy loom, precious metals, both physical and digital, have outperformed many other asset classes this year. This trend signals a maturing crypto sector, where real-world utility is increasingly prioritized over speculative hype.
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