Investor demand for blockchain-based exposure to precious metals is surging, with tokenized gold now anchoring the fast-growing tokenized commodities segment.
Tokenized commodities sector races past $6.1 billion
The tokenized commodities market has climbed to more than $6.1 billion in value, up from just over $4 billion at the start of January 2026. According to Token Terminal data, the sector expanded 53% in less than six weeks, making it the fastest-growing vertical in the broader real-world asset tokenization space.
Two gold-backed products dominate the landscape. Tether Gold (XAUt) holds a market cap of $3.6 billion after rising 51.6% in the past month, while PAX Gold from Paxos has reached $2.3 billion following a 33.2% gain over the same period. Together, these two tokens now account for more than 95% of all on-chain commodity value.
Year-over-year, the tokenized commodities sector has expanded by 360%. Moreover, this growth rate exceeds that of tokenized equities and on-chain funds, underscoring how quickly investors are adopting gold backed digital tokens as an alternative to traditional exposure.
Comparison with tokenized stocks and funds
Despite its rapid rise, the commodities segment remains smaller than other real-world asset categories. Tokenized stocks currently hold a market capitalization of $538 million, reflecting a 42% increase since January 1, 2026. However, tokenized funds still dominate with $17.2 billion in value, even though they have grown only 3.6% this year.
The commodities market now represents just over one-third the size of the funds segment. That said, its acceleration suggests tokenized assets growth is increasingly being driven by investor interest in gold-linked products rather than traditional securities mirrored on-chain.
Tether’s $150 million bet on Gold.com
In a move that could expand market access further, Tether announced a $150 million investment in precious metals platform Gold.com on Thursday. The firm said the deal aims to broaden access to tokenized gold products for mainstream investors who want digital exposure without relinquishing a link to physical bars.
The stablecoin issuer plans to integrate its XAUt token directly into Gold.com’s infrastructure. Moreover, Tether is exploring options that would allow users to buy physical gold using its USDT stablecoin, potentially creating a seamless bridge between digital tokens and real-world bullion.
Each Tether Gold unit represents ownership of one fine troy ounce of gold, held in London Good Delivery bars stored in secure vaults. Likewise, PAX Gold follows a similar model, with each token equating to one fine troy ounce from a 400-ounce London Good Delivery bar, reinforcing the link between blockchain entries and vaulted metal.
Physical gold prices hit new highs
The explosive rise in tokenized bullion comes against the backdrop of a powerful rally in spot prices. Over the past year, gold’s spot price has surged more than 80%, drawing renewed attention from both traditional and crypto-native investors seeking a hedge.
The precious metal reached a record high of $5,600 on January 29. A subsequent pullback took prices down to $4,700 earlier this month. However, gold has since recovered, trading around $5,050 at the time of writing, reinforcing its status as a defensive asset during uncertainty.
Bitcoin diverges from gold’s safe-haven role
While gold has marched to new highs, Bitcoin has traced a very different path. The leading cryptocurrency has fallen 52.4% from its early October peak of $126,080, eroding part of the narrative that it can reliably track the behavior of traditional safe-haven assets.
Bitcoin dropped to around $60,000 on Friday before rebounding to $69,050. The broader crypto market has struggled since October 10, when a sharp crash triggered $19 billion in liquidations. Moreover, this volatility has further separated its risk profile from that of physical bullion.
Strike CEO Jack Mallers argued that Bitcoin is still treated like a software stock by many market participants, even though it shares some characteristics with hard assets like gold. That said, its recent trading pattern has aligned more closely with high-risk growth assets than with defensive commodities.
Digital gold narrative under pressure
Crypto asset manager Grayscale weighed in on Bitcoin’s recent performance, noting that the coin’s long-standing narrative as “digital gold” has come under increasing pressure. The firm observed that Bitcoin’s price behavior now resembles that of a speculative technology asset far more than a safe-haven store of value.
This divergence has highlighted the contrasting roles of Bitcoin and physical gold in portfolios. While the latter has reinforced its safe-haven reputation amid macro uncertainty, the former has remained highly sensitive to risk appetite and liquidity conditions. Consequently, investors have been reassessing how each asset fits within a diversified strategy.
Analysts point out that the widening gap between gold’s record prices and Bitcoin’s drawdown is steering some capital into on-chain bullion products. In particular, the tether gold market and PAX Gold are drawing attention from traders who want programmable exposure without moving entirely away from the metal’s traditional risk profile.
How tokenized gold products work
The core appeal of tokenized gold lies in its blend of physical backing and digital convenience. Each unit of these tokens corresponds to a specific quantity of vaulted metal, allowing investors to hold fractional claims without managing logistics such as storage, insurance, or transport.
These structures also enable 24/7 trading across global venues. Moreover, investors can move value quickly between exchanges, DeFi protocols, and self-custody wallets, using the same underlying exposure they would get from allocated bullion accounts.
Underpinning these instruments is blockchain infrastructure that provides transparent, immutable records of token issuance and circulation. That said, users still rely on issuers and custodians to maintain accurate reserves of London Good Delivery bars, making due diligence crucial for participants seeking long-term exposure.
Market impact and trading dynamics
The rise of gold-pegged tokens is reshaping how investors access commodities. On-chain instruments provide fractional ownership of physical assets, enabling smaller ticket sizes than most traditional bullion products while preserving a direct link to the underlying metal.
Unlike conventional commodity exchanges, these markets typically operate with lower fees and around-the-clock access. Moreover, investors can integrate on-chain gold into decentralized finance tools, using it as collateral or a trading pair without leaving the crypto ecosystem.
As the tokenized commodities sector continues to expand, its share of the broader real-world asset landscape is likely to increase. For now, Tether Gold and PAX Gold remain the dominant gateways, but their rapid growth suggests institutional and retail demand for digitally native, metal-backed instruments is far from saturated.
Outlook for tokenized bullion and real-world assets
The convergence of record-high bullion prices, maturing blockchain infrastructure, and large capital inflows from issuers like Tether has created a powerful backdrop for further expansion. If current trends persist, tokenized metals could increasingly serve as a bridge between traditional commodity markets and digital finance.
Looking ahead, analysts will be watching whether more financial institutions launch competing products or integrate existing tokens into their platforms. That said, the current dominance of Tether Gold and PAX Gold, combined with strong growth since January 1, 2026, suggests tokenized commodities will remain a key pillar of real-world asset tokenization.
In summary, a combination of surging spot prices, infrastructure investments, and investor appetite for blockchain-based exposure has propelled tokenized bullion to new heights, positioning gold-backed tokens at the center of the next phase of digital asset market development.
Source: https://en.cryptonomist.ch/2026/02/11/tokenized-gold-commodities/
