Tokenized commodities reached a market cap of $3.93 billion in late 2025. Gold's price climbed above $4,500 per ounce, marking a 65% increase this year. Centralized finance platforms fuel this trend by offering regulated blockchain exposure.
The Rise of Tokenized Commodities
Tokenized assets represent real-world commodities on blockchain. They enable fractional ownership and instant transfers.
According to RWA.xyz analytics, the sector grew 11% in the past month. Year-to-date expansion nears $3 billion.
This surge aligns with broader real-world asset tokenization. The market expanded 260% in 2025.
Precious metals dominate the category. Gold accounts for over 80% of the total value.
Gold's Dominant Role
Tether Gold leads with a $1.74 billion market cap. Paxos Gold follows closely at $1.61 billion.
Spot gold hit a record $4,530 per ounce. Silver reached $74.56 per ounce recently.
These highs drive demand for tokenized versions. Investors seek accessible on-chain products.
Tokenized gold market cap exceeded $4.2 billion mid-December. It rose 147% in six months.
Silver and Other Commodities
Silver tokens lag behind gold. Their combined value remains under $1 million.
Other assets like soybean oil add $301 million. Platinum tokens contribute minimally.
Growth stems from investor preference for safe-haven assets. Economic uncertainties boost this shift.
CeFi's Involvement in Tokenization
Centralized finance platforms host most tokenized commodities. They provide compliance and security features.
Ethereum captures 65% of the RWA market share. Its value stands at $12.7 billion.
CeFi bridges traditional finance and blockchain. It attracts institutional players.
According to Standard Chartered, tokenized RWAs could hit $2 trillion by 2028. Commodities form a key segment.
Benefits in Centralized Finance
Tokenization reduces settlement times to seconds. Traditional methods take days.
Fractional shares lower entry barriers. Small investors access high-value commodities.
CeFi ensures audited reserves for tokens. This builds trust among users.
Platforms like Paxos operate under NYDFS regulation. Tether uses Swiss vaults for storage.
Challenges and Risks
Regulatory scrutiny varies by jurisdiction. CeFi must navigate compliance hurdles.
Cyber risks persist in digital assets. Secure storage remains critical.
Market volatility affects tokenized values. They track underlying commodity prices.
Despite challenges, adoption accelerates. Institutions favor regulated CeFi options.
Trends and Analyst Insights
Galaxy Research notes $13.51 billion in CeFi borrows. This grew 9% quarter-over-quarter.
Brickken reports RWA tokenization at $29.4 billion in 2025. It marks 6x growth from 2022.
Analysts highlight AI-integrated blockchain trends. They enhance tokenization efficiency.
BCG-Ripple projects $18.9 trillion by 2033. Annual growth rate exceeds 50%.
CeFi trends favor less liquid investments. Commodities attract $250 billion inflows.
Institutional Adoption
Fundraising hit records in Q2 2025. Focus areas include tokenization infrastructure.
World Economic Forum discusses next-gen financial markets. Tokenization covers payments and assets.
Experts predict greater institutional entry in 2025. Technology integration drives this.
MiCA regulations in Europe support compliant tokens. They position for broader adoption.
Future Outlook for Tokenized Commodities
Gold's rally extends amid geopolitical tensions. Venezuela issues contribute to price spikes.
Tokenized assets offer hedges against inflation. They provide portfolio diversification.
CeFi platforms expand offerings. More commodities may tokenize soon.
Privacy concerns arise in on-chain finance. Solutions like default privacy emerge.
Ethereum's dominance may persist. Other chains compete for share.
Potential Impacts
Increased liquidity benefits global markets. Faster trades reduce costs.
Retail access democratizes commodities investing. It promotes financial inclusion.
Sustainability trends influence tokenization. Green commodities gain traction.
Analysts foresee exponential growth. CeFi remains central to this evolution.
This trend emphasizes tokenized commodities' role in modern finance. It equips investors with tools for efficient asset management in centralized ecosystems.
