Beyond Gold: The Case For Tokenised Commodities
Tokenised commodities are expanding beyond gold, with the market growing from $1.43 billion in January 2025 to $5.5 billion by March 2026, led by Tether Gold (XAUT). The model aims to address inefficiencies in traditional commodity markets, offering faster settlements, 24/7 access, and fractional ownership.
The tokenised commodities market has been dominated by gold due to its liquidity, custody infrastructure, and global recognition, but the next phase targets broader commodities like industrial metals and oil. According to CoinGecko, the sector grew from $1.43 billion at the start of 2025 to $5.5 billion by the end of Q1 2026, with Tether Gold (XAUT) accounting for $1.87 billion of that expansion. Gold’s early adoption reflects its deep liquidity and transparent pricing, but the larger opportunity lies in commodities where traditional access remains limited or inefficient for most investors.
Tokenised commodities are digital instruments linked to real-world assets, recorded on blockchains but held off-chain by custodians under legal structures. The value of such tokens depends on issuer credibility, legal claims, and the rights attached, rather than merely their on-chain presence. Examples include tokenised equities and US Treasury exposure, where the underlying asset remains regulated and physically managed. Commodities are a natural fit for tokenisation because most investors already access them indirectly through futures, ETFs, or specialist funds, making fractional ownership and faster settlements practical alternatives.
The practical benefits of tokenisation include reduced minimum entry points, 24/7 market access, and transparent custody records, though complexity increases with less liquid or more specialised commodities. Oil, one of the world’s most liquid commodities, serves as a benchmark, but the bigger test lies in markets like nickel, a critical industrial metal with applications in stainless steel, batteries, and advanced materials. Direct exposure to nickel remains difficult for many investors, often restricted to specialist markets or institutional channels, making tokenised structures a potential solution.
Tokenisation does not replace traditional commodity markets but expands access by creating regulated, transferable instruments linked to physical or financial exposures. For investors, this broadens routes into historically restricted markets, while producers and inventory holders gain access to a wider pool of buyers. The quality of custody, verification, and legal frameworks remains essential, but where these foundations are strong, commodities like nickel demonstrate the broader potential of tokenisation beyond gold.