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Tokenized commodities are branching beyond gold-price exposure into lending against gold and silver and blockchain-based oil products. EnSub expanded its WTI token to Solana and says natural gas and Brent tokens are in development; growth depends on custody, logistics and borrower risk.
Tokenized commodity firms are moving beyond gold-price tracking toward lending backed by precious metals and blockchain-based energy products, with EnSub expanding its West Texas Intermediate (WTI) oil token to Solana on Oct. 2. Executives at Paxos Labs, Theo and EnSub say the products could connect investors with borrowers and commodity businesses, but wider adoption depends on physical custody, settlement, logistics and credit risk.
The market remains relatively small and concentrated. Tokenized commodities had a market capitalization of $5.55 billion at the end of March 2026, compared with $1.43 billion at the beginning of 2025, according to CoinGecko figures cited by CoinDesk. Gold-backed tokens from Paxos and Tether accounted for almost 90% of the reported growth. The figures describe market capitalization, not trading volume or the amount of commodity financing.
Paxos Labs is developing PAXGy, a token backed by PAX Gold (PAXG), with reserves deployed to institutional borrowers. The product is designed so that holders can redeem each token for more PAXG as lending payments accrue in ounce terms. That structure could provide gold exposure alongside potential lending income, but the return is not guaranteed: defaults could reduce the token’s value. Paxos Labs co-founder Bhau Kotecha also raised borrowing against PAXGy as a possible future use.
Theo’s thSLVR passes income from institutional silver leases to holders while maintaining exposure to silver prices, according to the report. Theo Chief Investment Officer Iggy Ioppe pointed to refiners, institutions and corporate treasuries as potential users of tokenized commodities. He described silver as a likely next metal after gold, while noting that volatility and limited available supply complicate the market.
On energy, EnSub says each of its WTIC tokens represents one barrel of WTI crude backed by verified physical inventory. The company announced its move from Ethereum to Solana on Oct. 2. CEO and co-founder JP Thieriot said natural gas and Brent crude tokens are under development. Those are plans, not confirmed launches.
From Metal Exposure to Commodity Finance
The proposed change is from tokens that mainly track an asset’s price to products that could also support lending, leasing and inventory financing. If the arrangements work as described, commodity holders may be able to put gold or silver to work while retaining price exposure, and businesses may gain another route to financing physical inventory. Energy tokens could also offer a digital way to represent crude oil exposure.
That potential is not the same as proven market demand or dependable returns. A token tied to physical commodities relies on more than blockchain access: the asset must be identified, held, insured or otherwise protected, and made available under clear redemption terms. Lending adds the possibility that a borrower will not repay. For readers, these products combine commodity-price volatility with custody and credit risks, and their practical value depends on the underlying arrangements.
The products could also change who can access commodity markets traditionally dominated by large institutions. Kotecha told CoinDesk that gold lending has often required scale and established relationships. Tokenization may widen access, but the report does not establish how broadly these products are available, how liquid they are, or whether investors can readily redeem or sell them.
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A Gold-Led Market Tests Expansion
Tokenized commodities are blockchain-based tokens representing ownership of, or exposure to, physical assets such as gold, silver and oil. The market’s recent growth has been concentrated in gold-backed products, according to CoinGecko data cited in the CoinDesk report. The next proposed step is not simply adding more assets: Paxos Labs and Theo are pursuing ways to attach lending or lease income to precious metals.
Theo’s silver product builds on an established institutional leasing market, Ioppe said, but industrial demand and tighter metal availability make the opportunity different from gold. Oil poses another set of issues. Unlike a metal held in a vault, crude is part of a supply chain involving storage and transport. EnSub’s WTI token is described as backed by verified inventory, while the company’s planned natural gas and Brent products have not yet been launched.
The executives’ growth forecasts are opinions, not established outcomes. Ioppe projected a tokenized commodities market in the tens of billions of dollars within five years and above $100 billion within a decade. Thieriot predicted oil tokens could account for a quarter of the oil market within 10 years. Neither forecast is independently confirmed by the market-size data reported.
“The big proposition is access.”
— Bhau Kotecha, Paxos Labs co-founder, speaking to CoinDesk
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Custody, Credit and Demand Risks
Several practical and financial questions remain unresolved. The report does not provide full details on custody, insurance, redemption procedures or independent verification for every product. It also does not establish how liquid the tokens are or how their prices would behave during market stress.
Lending returns are not guaranteed, and borrower defaults could erode the value of PAXGy, according to the report. For silver, greater price volatility and a tighter supply of available metal may constrain lease activity. Oil adds storage, transport and settlement challenges. The report does not give terms for EnSub’s planned natural gas or Brent tokens or a launch schedule for either.
Market forecasts from Theo and EnSub executives remain projections. It is not yet clear whether investor interest, commodity-business demand or the infrastructure required to connect tokens with physical assets will grow enough to support those estimates.
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Product Launches and Physical Settlement
The next developments to watch are whether EnSub launches its proposed natural gas and Brent tokens, and whether the expanded WTI product attracts users on Solana. Paxos Labs’ lending model and Theo’s silver leases will also need to show how borrower screening, payments, custody and redemption work in practice.
Further market data may indicate whether activity spreads beyond gold-backed tokens, but the reported market-cap figures alone do not measure financing use or adoption by commodity businesses. Until product terms, physical verification and user demand are clearer, expansion plans and executive forecasts should be treated as expectations rather than established results.
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Key Questions
What are tokenized commodities?
They are blockchain-based tokens that represent ownership of, or exposure to, physical assets such as gold, silver or oil. Their rights and risks depend on each product’s terms and how the underlying assets are held.
What changed with EnSub’s oil token?
EnSub announced on Oct. 2, 2026, that its WTI crude token had expanded from Ethereum to Solana. The company says each token represents one barrel backed by verified physical inventory.
Are the new commodity lending returns guaranteed?
No. The report says lending returns are not guaranteed, and borrower defaults could erode a token’s value. Commodity prices can also fluctuate, so holders face risk of loss.
Have EnSub’s natural gas and Brent tokens launched?
Not according to the report. CEO JP Thieriot said those tokens are under development; no launch date or full product terms were provided.
How large is the tokenized commodities market?
CoinGecko data cited by CoinDesk put its market capitalization at $5.55 billion at the end of March 2026, up from $1.43 billion at the beginning of 2025. Gold-backed tokens from Paxos and Tether accounted for almost 90% of the growth reported.
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