Gold prices have surged dramatically, driven by safe-haven buying amid geopolitical tensions including recent US-Israel strikes on Iran, inflation concerns, central bank accumulation, and a weakening US dollar.
This rally has spilled over into the crypto and blockchain space, boosting interest in tokenized gold—digital tokens backed 1:1 by physical gold, such as PAX Gold (PAXG) and Tether Gold (XAUT). Spot gold is trading around $5,300–$5,400 per ounce, with recent highs near $5,600 in January and fluctuations in the $5,200–$5,400 range.
The metal has risen over 80% year-over-year in some metrics, hitting record levels and continuing a multi-year bull run. This price momentum has fueled demand for tokenized versions, which offer blockchain benefits like 24/7 trading, fractional ownership, faster settlement, and easier integration with crypto portfolios—without the need for physical storage or traditional brokers.
Why the Rally is Driving Tokenized Gold Demand
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As physical gold rallies on macro uncertainty, investors including crypto holders rotate into tokenized gold for stability amid volatile digital assets. On-chain data shows surges in accumulation, with large purchases. The tokenized commodities market; dominated by gold at >95% has surpassed $6 billion in market cap, up significantly in recent weeks and months due to the rally.
Daily volumes for tokenized gold have hit $1 billion+ at peaks, outpacing many traditional gold ETFs in liquidity during certain periods. Tokenization provides liquidity, lower costs, and exposure to gold’s upside while avoiding some traditional market frictions. It’s seen as a hedge in a fragmented global environment.
Major players like Tether (XAUT) and Paxos (PAXG) lead the space, with tokenized gold often trading at premiums during off-hours or high-volatility events. Experts note risks, including custody issues, regulatory uncertainty especially in the US, and potential volatility if gold prices pull back.
Still, the trend highlights growing convergence between traditional commodities and blockchain, with tokenized gold emerging as a preferred on-chain store of value during this precious metals boom. While tokenized gold dominates the tokenized commodities market often exceeding $3–5B+ in market cap with leaders like PAXG and XAUT, tokenized silver is gaining traction amid silver’s own dramatic price rally and broader RWA adoption.
Silver has been highly volatile in early 2026: Spot prices surged to record highs near $120–$121 per ounce in January, driven by industrial demand, persistent supply deficits, inflation hedging, and speculative interest. As of early March, prices have pulled back but remain elevated, trading around $90–$95 per ounce.
This follows a massive 2025 rally; >130–140% in some periods, with forecasts for 2026 averaging ~$81/oz but potential for higher amid ongoing macro factors like geopolitical tensions and green tech boom. Silver’s performance has outpaced gold in percentage gains at times due to its dual role as a precious and industrial metal, creating spillover demand for digital exposure.
The tokenized silver sector remains much smaller than gold but shows steady growth and increasing interest: Total market cap for tokenized silver hovers around $400–$420 million, representing just a fraction ~6% or less of the broader tokenized commodities space.
Demand has surged in early 2026, with reports of holdings increasing 32%+ since January in some issuers, and overall tokenized silver demand up over 400% in select periods—fueled by silver’s breakout, RWA trends, and DeFi integration. Trading volumes and inflows reflect growing appeal.
Tokenized commodities saw net inflows of ~$130M in recent weeks, with silver tokens benefiting from 24/7 liquidity, fractional ownership, no storage costs, and use as on-chain collateral or hedges. Total RWA TVL has surged, and tokenized precious metals overall exceed $5.5B, with projections for massive expansion potentially trillions by 2030.
Silver’s structural shortages and role in renewables and tech make it attractive beyond pure safe-haven plays. Investors use tokenized silver for DeFi yield, cross-chain trading, and portfolio diversification amid volatile crypto markets. Recent announcements like Techemynt’s $SilverNZ; 1:1 backed by physical silver in NZ vaults add institutional-grade options.
Leading Tokenized Silver Projects
Kinesis Silver (KAG): The clear leader, with a market cap of ~$406–$414 million. Physically backed by allocated silver in global vaults; offers yield-bearing features and redemption options. Traded on platforms like Kinesis Money, BitMart.
iShares Silver Trust (Ondo Tokenized Stock – SLVON): ETF-linked exposure, smaller at ~$20–$40 million cap but seeing volume spikes; 1,200% monthly increases in some periods. tSILVER (tXAG, gram-backed), Silver Token (XAGX), newer entries like $SilverNZ, and synthetic and derivative options on platforms like Binance or Ostium.
Silver tokens often track spot prices closely but can trade at premiums during volatility or off-hours. Tokenized silver is viewed positively for 2026, with expectations of continued growth from DeFi integrations, more listings, and institutional adoption. Some forecasts suggest 20–30% upside by late 2026 if silver prices stabilize or rally further.
Tokenized silver is emerging as a compelling on-chain alternative for silver exposure—especially for crypto-native investors—amid the metal’s strong fundamentals. It’s smaller and less mature than tokenized gold but catching up fast in this precious metals bull run.