Tokenized commodities poised to expand lending and energy markets

Tokenized commodities could broaden from a gold-focused market into a wider system for financing metals, trading energy and borrowing against physical assets, industry executives told CoinDesk and related announcements in 2026.

Market capitalization of tokenized commodities reached $5.55 billion at the end of March 2026, up from $1.43 billion at the beginning of 2025, and growth was driven largely by gold-backed tokens from Paxos and Tether, which accounted for almost 90 percent of the increase.

Paxos Labs and Theo see lending as a key mechanism to extend tokenization beyond simple price exposure, connecting investors seeking income with businesses that need inventory financing. Paxos Labs deploys reserves backing its PAXG token to institutional borrowers and designed PAXGy to potentially allow holders to increase gold holdings through lending returns paid in ounce terms while retaining price exposure.

Bhau Kotecha, co-founder of Paxos Labs, emphasized access to gold lending for individuals, family offices and institutions, while noting lending returns are not guaranteed and borrower defaults could reduce token value.

Theo applies a similar income-pass-through approach with its thSLVR product, which routes income from institutional silver leases to token holders while maintaining exposure to silver prices. Theo Chief Investment Officer Iggy Ioppe identified demand from commodity owners and users, including institutions seeking productive collateral, refiners financing inventory and corporate treasuries valuing quick settlement.

Silver is viewed as the natural second metal after gold because of industrial demand and an established leasing market, though greater volatility and tighter available supply complicate the opportunity. Iggy Ioppe projected a tokenized commodities market worth tens of billions within five years and more than $100 billion within a decade, with tokenization becoming part of ordinary settlement and financing within 15 years.

Energy tokenization presents larger logistical challenges but also substantial opportunity, according to EnSub. The company expanded its WTIC token from Ethereum to Solana on Oct. 2, with each token representing one barrel of West Texas Intermediate crude backed by verified physical inventory.

EnSub co-founder and CEO JP Thieriot said natural gas and Brent tokens are under development and predicted demand from energy buyers hedging costs, investors seeking exposure and suppliers needing working capital. He forecasted that oil tokens could account for a quarter of the oil market within 10 years.

Executives differed on the timeline for energy to follow metals into tokenization: Iggy Ioppe cited storage and transport as complicating income-generating energy tokens, while JP Thieriot highlighted the need for verifiable inventory, workable custody and settlement for commodities continuously in motion.

Liberal News Analysis: What Does This Development Mean?

The expansion from gold-dominated tokenization toward silver and potentially oil suggests tokenized commodities could evolve from niche price exposure instruments into tools for inventory financing and working capital, linking investors seeking yield with firms needing liquidity.

Lending structures that pass leasing income to token holders create a pathway for individual and institutional investors to access markets historically limited to large counterparties, but they carry counterparty and operational risks that could affect token value.

The development of energy tokens depends on integrating tokens with reliable physical custody and settlement systems, and if those logistical challenges are addressed the market could scale significantly given the size of global energy markets.

Quick Glance: What You Need to Know

• Tokenized commodities market cap rose to $5.55 billion by March 2026 from $1.43 billion in early 2025.
• Gold-backed tokens from Paxos and Tether drove nearly 90 percent of recent growth.
• Paxos Labs deploys PAXG reserves to institutional borrowers and designed PAXGy to accumulate lending returns in ounce terms.
• Theo’s thSLVR passes institutional silver lease income to token holders while preserving price exposure.
• EnSub expanded its WTIC token to Solana, with each token representing one barrel of WTI backed by verified inventory.
• Executives predict significant market expansion but note logistical and counterparty risks, especially for energy tokens.