Blockchain Meets Gold: Tokenized Commodities Hit $6 Billion

Blockchain markets are seeing a rapid influx of tokenized gold. Recent reports indicate that the tokenized commodities sector expanded by about 53% in less than six weeks, pushing its total value past $6 billion. This surge has largely been driven by a handful of gold-backed tokens, drawing attention from traders as well as major financial institutions.

Gold-Backed Tokens Lead the Growth

On-chain data shows that most of the new capital has flowed into Tether’s XAU₮ and Paxos’s PAXG, which together account for nearly $6 billion of the sector’s total value.

Investors are increasingly using these tokens as a convenient way to gain exposure to gold without the hassle of transporting physical bars or handling vault documentation. Some view them as portable safe-haven assets, while others appreciate the ability to trade small fractions of gold in digital marketplaces.

Tether Moves Closer to Physical Gold Integration

Tether is reportedly going beyond token issuance by investing $150 million in Gold.com. The company plans to integrate XAU₮ into the platform, allowing customers to purchase physical gold using stablecoins.

This initiative aims to connect digital token balances more closely with real-world gold reserves and distribution channels. If successful, everyday investors could use crypto tools to buy and receive actual bullion, potentially reshaping how people access physical gold.

Strong Growth Projections

Analysts are projecting substantial expansion in the tokenized real-world asset market. Geoffrey Kendrick of Standard Chartered estimates that the sector could grow from around $35 billion today to as much as $2 trillion by 2028.

Similarly, crypto analyst Alvin Foo suggests that tokenized commodities—especially gold on public blockchains—could eventually reach trillion-dollar valuations as fractional ownership and new trading infrastructures gain traction.

However, these forecasts depend on several key factors, including clearer regulations, reliable custody verification, and broader participation from traditional investors. While the outlook is ambitious, important technical and legal developments are still underway.

How the System Works and Why It Matters

Stablecoin liquidity and decentralized finance infrastructure are expected to support the expansion of tokenized commodities. Faster settlement times, lower entry barriers, and simplified custody options could make gold accessible to smaller investors who were previously excluded.

Fractional ownership already allows individuals to hold a portion of a gold bar without ever visiting a vault. Still, investor confidence will depend on transparent audits, insured storage, and clear minting and redemption processes to ensure the underlying assets are secure.

Voice Of Osiz

At Osiz, we see the rapid rise of tokenized gold as a clear signal that real-world assets are moving confidently onto the blockchain. The growing adoption of gold-backed tokens highlights how investors are seeking faster, more flexible, and borderless ways to access traditional assets. Tokenization not only improves liquidity but also opens new opportunities for fractional ownership and global participation. As institutions and platforms explore deeper integration between digital tokens and physical commodities, the need for secure, transparent, and scalable blockchain solutions becomes essential. This is where Osiz delivers value through advanced tokenization, smart contract, and DeFi development services. Our expertise helps businesses launch compliant and efficient asset-backed token ecosystems. We believe tokenized commodities will play a major role in shaping the next generation of digital finance.

Source: Trading View