How Tokenized Commodities Are Rewiring Global Trade

• Tokenized commodities are generally considered one of the earliest and most established use cases of real-world asset (RWA) tokenization.
• It stemmed from the need to bridge the gap between the high barrier of physical markets and liquidity.
• The process allows investors to hold, manage, and exchange the value of tangible assets without worrying about the complexities of their physical storage, transport, or insurance.

To date, commodity tokens account for the second-highest transfer volume in the RWA world next to stablecoins. It signifies their sustained demand amid the rapid transition of markets into on-chain finance.

This article dives into tokenized commodities, looking back at their early days and examining their potential growth in the coming years. It also explores the top projects and the blockchains making their mark, helping readers discover potential opportunities in the sector.

Commodities

Commodities are raw materials or basic resources, including agricultural and mining products. These include, but are not limited to, gold, silver, iron, copper, coal, diamonds, crude oil, coffee, sugar, wheat, cotton, beans, and more.

ADVERTISEMENTMerchants trade these goods at a wholesale level on commodities exchanges through spot markets, options, futures contracts, exchange-traded funds (ETFs), and other investment vehicles. Among the largest trading venues for commodities are the Chicago Mercantile Exchange (CME) Group, the Chicago Board of Trade (CBOT), the New York Mercantile Exchange (NYMEX), the Intercontinental Exchange (ICE), and the London Metal Exchange (LME).

Tokenized Commodities

Tokenized commodities are digital tokens on the blockchain. Each represents direct ownership of a specific quantity and quality of a verifiable real-world physical good. Typically, the backing ratio of each token and commodity is 1:1.

Holders benefit from the fractional ownership of tradable commodities. The feature lowers the entry barrier to a wholesale market that typically requires substantial capital from participants. It also does away with the traditional system rife with multiple layers of brokers, clearinghouses, and administrative agents, thereby improving efficiency and preventing delays.

ADVERTISEMENTInvestors can purchase these assets for as little as a few dollars, giving them the same price exposure to commodities as institutional players. Then, owners of these investment instruments enjoy near-real-time settlement thanks to the deep liquidity pools of their tokens’ associated networks, as well as 24/7 access to the status of their holdings and to markets for cash conversion and redemption.

Additionally, the public and immutable nature of the distributed ledger technology (DLT) underlying blockchain enhances transparency. It paves the way for real-time audits, ensuring that the token supply matches the underlying physical assets.

Likewise, the blockchain improves provenance and tracking for physical versions of commodity tokens, providing a digital trail to ensure producers or miners source them ethically and sustainably.

## Types of Tokenized Commodities

Companies delving into RWA tokenization mostly prefer high-value commodities. Tokenized gold is, by far, the most popular among tokenized commodities because it offers low volatility, historical resilience, and universal demand.

Physical gold has varied uses, including jewelry, electronics, capital movement, loan collateral, and wealth preservation. Meanwhile, its digitized version can be similarly utilized in onchain value transfer, treasury operations, traditional finance (TradFi) or decentralized finance (DeFi) collateralization, and more.

Aside from gold, other commodities commonly tokenized by companies include the following, with some of their examples:

ADVERTISEMENT* Energy assets, such as oil and natural gas

• Agricultural goods, like beans (soy and coffee) and wheat
• Mining products, such as diamonds, silver, iron, nickel, and copper

Tokenized commodities also extend to green bonds. These debt-based financial instruments serve the same function as traditional bonds but focus on funding environmental or climate-friendly economic initiatives. Investors in these assets are rewarded with regular yields and assurance that their funding provides measurable ecological benefits.

Crunching the Numbers

Statista estimates the nominal value of the global commodities market at $135.49 trillion in 2026. The rapidly rising cost of goods, particularly raw materials used in the electronics, communication, and automotive industries, could push the figure to $149.02 trillion by 2030.

According to RWA.xyz, the tokenized commodities market is worth $6.93 billion as of February 13, 2026. The figures account for barely 1% of the $694.66 billion circulating RWA tokens. Nonetheless, the category has grown significantly from the $312.32 million valuation it reflected on September 20, 2021, when the platform began tracking tokenized commodities.

Tokenized RWA Market Value (Source: RWA.xyz)Tokenized commodities have consistently emerged as the second most traded asset in the RWA market since 2020, next to stablecoins. As of February 1, 2026, tokenized commodities contributed to $7.29 billion to the $4.24 trillion monthly RWA transfer volume. It came in a distant second to the $7.23 trillion volume of stablecoins but ahead of the $3.58 billion share of tokenized private credit.

RWA by Transfer Volume (Source: RWA.xyz)## Best Performing Commodity Tokens

The following projects stand out by market cap in tokenized commodities, indicating their dominance in the sector. Their tokens, along with the native tokens of the chains they are associated with, are worth considering for investors seeking exposure to the space.

1. Tether Gold

Tether Gold (XAUt) is a digital token representing direct ownership of physical gold stored in Tether’s secure vaults. Each unit is divisible to 0.000001 fine troy ounce of gold, with an overall market value of $2.61 billion.

The largest stablecoin issuer in the world mints its gold token mostly on the Ethereum (ETH) chain, with additional support from the Tron (TRX) network.

2. Paxos Gold

Paxos Gold (PAXG) is the earliest tokenized gold on blockchain. Each token represents ownership of one fine troy ounce of a London Good Delivery gold bar secured in professional vault facilities.

PAXG, with a $2.26 billion market cap, is minted on the Ethereum network by Paxos, leveraging the chain’s long-standing leadership in tokenization, deep liquidity, and network integrity.

3. Justoken’s JMWH, JSOY_OIL, and JSOY

Justtoken launched its commodity tokens only in 2026, but it has made an instant mark in tokenized RWAs. The company immediately positioned itself at the top rankings of the tokenized commodities category, capturing a $1.5 billion share.

So far, Justoken has integrated energy, soybean, soybean oil, cotton, and corn grains into its tokenization platform. Its largest range of products includes:

• JMWH token representing one real megawatt-hour (MhW) of energy with a $861 million market cap
• JSOY_OIL token pegged to one metric ton of soybean oil with $361.12 billion total value
• JSOY token equivalent to one metric ton of physical soybeans with $242.31 billion market cap

4. Ctrl Alt Diamonds Collection

Ctrl Alt only entered the RWA tokenization game in 2025, but it has already tokenized $445.23 million worth of commodities. Its tokenized diamond collection accounts for $280.31 million in the market.

The company uses the XRP Ledger (XRPL), Solana (SOL), and Mantra (OM) platforms to integrate diamonds and real estate onchain.

Top Commodity Tokens by Market Value (Source: RWA.xyz)## Top Chains for Commodity Tokenization

The following have emerged as the most preferred chains for commodity tokenization, suggesting their growing role as primary infrastructure in their market segment.

• Ethereum with $4.92 billion worth of tokens
• XRP Ledger with $1.14 billion market cap
• Polygon housing $696.39 million worth of tokens
• Arbitrum holding $95.53 million in token value
• BNB Chain possessing a $26.18 million share

Top Chains in Commodities Tokenization (Source: RWA.xyz)## Potential Growth

Analytics firms see significant growth potential in tokenized commodities. Ark Invest’s latest report titled “Big Ideas 2026” suggests that the RWA token market could accelerate to a $11 trillion valuation by 2030. It believes tokenized US Treasuries and commodities will lead the sector.