Tokenized Commodities Market Reaches $5.55 Billion, Gold Lending Products Introduced
Written with artificial intelligence.
The market capitalization of tokenized commodities has surged to $5.55 billion as of March 31, 2026, primarily driven by gold tokens. Paxos Labs has launched a new lending product, PAXGy, which connects asset lending to institutional borrowers with potential returns.
Overview of Tokenized Commodities Growth
As of March 31, 2026, the market capitalization of tokenized commodities has increased to $5.55 billion, a significant rise from $1.43 billion on January 1, 2025. Most of this growth can be attributed to gold tokens.
Major Contributors to Market Growth
According to CoinGecko's 2026 report on physical assets, the increase of $4.12 billion in this market is largely due to Tether Gold (XAUT) and Paxos Gold (PAXG), which together accounted for approximately 89.1% of the total growth with $1.87 billion and $1.8 billion respectively.
Introduction of PAXGy by Paxos Labs
On September 24, Paxos Labs introduced PAXGy, a product based on Paxos Gold. This product holds part of the underlying assets for redemption while lending the remainder to institutional borrowers. The profits generated from these loans will affect the exchange rate between PAXGy and Paxos Gold instead of increasing the total token supply. Paxos Labs has warned that if borrowers fail to meet their obligations or if losses occur in the lending strategy, the exchange rate may decrease, meaning returns are not guaranteed and the product's value is subject to gold price fluctuations.
Similar Products and Market Challenges
A similar product targeting silver is Theo's thSLVR, which combines exposure to silver prices with lending revenue. However, challenges remain in the tokenization of commodities like crude oil and natural gas, particularly in stock verification, custody, and transportation. The WTIC terms state that one token represents a share of one barrel of WTI crude oil and is backed by energy receipts. As of September 15, these tokens are recorded as Ethereum ERC-20 tokens. The growth of the tokenized commodities market is heavily focused on gold tokens, and users should consider borrower creditworthiness, redemption conditions, and ownership details before engaging with these products.