In 2026, mining and technology companies are more actively launching tokens backed by gold, copper, uranium, nickel, and cobalt, seeking to attract crypto investors to the commodities market, writes the FT. Such projects aim to simplify retail investors' access to physical metals, provide crypto capital with an opportunity to diversify through RWA, and simultaneously create a new mechanism for financing mining projects.
At the same time, experts warn that the market for tokenized metals remains in its early stages, and its development comes with a number of risks.
Interest in metal tokenization has emerged against the backdrop of a broader adoption of blockchain infrastructure in traditional finance. After tokenization began to encompass stocks and bonds, companies are now attempting to bring physical assets onto the blockchain. This trend aligns with the prediction of Consensys CEO Joseph Lubin, who stated that the global economy is gradually moving toward the full tokenization of assets.
However, the potential of this market still differs significantly from the scale of traditional instruments. According to the World Gold Council, the total value of gold ETFs last month was about $530 billion, whereas the two largest gold-backed tokens—Tether Gold and Pax Gold—had a market capitalization of approximately $2.7 billion and $1.9 billion, respectively.
From Gold to Uranium
Proponents of tokenization believe that blockchain can make access to commodity assets easier. For example, the Metals.io platform has already issued tokens linked to uranium, nickel, and cobalt, which under certain conditions can be exchanged for physical metal. According to Ben Elvidge, head of alternative assets at Trilitech, such instruments provide "direct access to commodity assets without the cost and complexity of futures."
Demand, he said, comes from both institutional investors and "crypto-native capital seeking diversification through real-world assets with growth potential." At the same time, the scale remains small: the total trading volume on Metals.io since December 2024 is about $24 million, and the number of token holders is around 9,000.
Some companies are even attempting to tokenize metals that have not yet been mined. Nasdaq-listed Datavault AI plans to issue tokens backed by copper and antimony directly against future production. The company's CEO, Nathaniel Bradley, compared this model to a futures contract.
He emphasized that the tokens would allow investors to trade the assets or hold them until the mined metal can be physically delivered.
Tokenization Grows, But Risks Remain
The development of tokenized metals is occurring against the backdrop of overall growth in the RWA segment. According to a joint report by CoinShares and Token Terminal, the total market capitalization of tokenized real-world assets has already surpassed $43 billion. The authors of the study noted that the market is transitioning from simply issuing tokenized assets to their practical use as collateral, in trading, and in derivative instruments.
However, tokenizing physical metals has additional complexities. Investors need to consider the origin, quality, and characteristics of the raw material, and industrial metals are not always fungible. Mike Oswin, Global Head of Market Structure and Innovation at the World Gold Council, posed the question:
"Are retail investors expected to understand the process of financing a part of the gold value chain?"
Another issue is market fragmentation. Different tokens trade on different platforms, and some are only available through the issuers' own applications.
"The area where we need more development is interoperability," noted Caitlin Barnett, Director of Regulation and Compliance at Chainalysis.
At the same time, she added:
"I think ultimately everything will move to blockchain because of how it enables the recording of information."
Recall that experts at New York Life Investment Management noted that the main potential of tokenization lies in creating personalized investment portfolios on an industrial scale.
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