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The tokenized commodities market has surged past $6 billion, driven by a powerful gold rally and rising demand for real-world asset (RWA) tokenization. As gold prices hit record highs, investors are increasingly turning to tokenized gold products such as Tether Gold (XAUt) and PAX Gold (PAXG).
In fact, the tokenized commodities market is now the fastest-growing segment in the broader tokenized assets market, outperforming tokenized stocks and tokenized funds in 2026.
Tokenized Commodities Market Grows 53% in Weeks
The tokenized commodities market has grown more than 53% in less than six weeks, climbing from just over $4 billion at the start of the year to approximately $6.1 billion, according to Token Terminal data.
This means nearly $2 billion has entered the tokenized commodities market since Jan. 1. As a result, commodities have become the strongest-performing category in the real-world asset tokenization sector.
Moreover, this growth significantly outpaces other RWA segments. While tokenized stocks have grown 42% this year and tokenized funds only 3.6%, the tokenized commodities market has expanded at a much faster rate.
Tokenized Gold Dominates the Market
Gold-backed tokens account for more than 95% of the tokenized commodities market, making tokenized gold the clear leader in onchain commodities.
Tether Gold (XAUt) remains the largest contributor. Its market capitalization has surged 51.6% in the past month, reaching around $3.6 billion. Meanwhile, PAX Gold (PAXG) has increased 33.2%, pushing its valuation to approximately $2.3 billion.
Together, XAUt and PAXG now represent the overwhelming majority of the tokenized commodities market. Therefore, the sector’s growth is closely tied to the strength of gold prices.
Despite this rapid expansion, the tokenized commodities market is still smaller than the $17.2 billion tokenized funds market. However, it is already significantly larger than tokenized stocks, which are currently valued at $538 million.
Tether Expands Tokenized Gold Strategy
Tether has strengthened its position in the tokenized commodities market by acquiring a $150 million stake in Gold.com, a precious metals platform. The move aims to expand access to tokenized gold and bridge traditional commodities with blockchain infrastructure.
According to Tether, its XAUt token will integrate directly into Gold.com’s platform. Additionally, the company is exploring options that would allow users to purchase physical gold using USDT stablecoin.
Consequently, tokenized commodities could become more accessible to both crypto-native investors and traditional gold buyers.
Gold Rally Fuels Onchain Demand
The growth of the tokenized commodities market comes as gold’s spot price has rallied more than 80% over the past year, reaching an all-time high of $5,600 on Jan. 29.
Although gold briefly retraced to $4,700 earlier this month, it has since rebounded to around $5,050. This strong performance has reinforced gold’s status as a safe-haven asset during periods of financial uncertainty.
As gold continues to climb, investors are increasingly choosing tokenized gold for easier access, improved liquidity, and blockchain-based settlement.
Bitcoin Struggles Against Safe-Haven Assets
While the tokenized commodities market expands, Bitcoin has faced significant volatility. Following the Oct. 10 crypto market crash, approximately $19 billion in liquidations were triggered across the market.
Bitcoin dropped more than 52% from its October high of $126,080 before rebounding to around $69,000. However, its recent performance has raised questions about its “digital gold” narrative.
Industry leaders, including Strike CEO Jack Mallers, have argued that Bitcoin is still treated like a high-growth tech asset rather than a hard-money safe haven. Similarly, Grayscale noted that Bitcoin’s price action resembles a risk asset more than traditional gold.
Therefore, as gold strengthens, the tokenized commodities market continues to benefit from shifting investor sentiment.
Outlook for the Tokenized Commodities Market
Looking ahead, the tokenized commodities market could maintain momentum if gold prices remain elevated. Institutional adoption, increased onchain liquidity, and expanding real-world integrations are likely to support further growth.
If current trends continue, tokenized gold may solidify its role as a major pillar within the broader tokenized assets market in 2026.