Asset Tokenization in Financial Markets 2025

Contents29 Commodities A commodity is a physical good attributable to a natural resource that is tradable in physical (spot) markets and in future and forward markets.56 The nominal value in the commodities market is projected to reach $142.85 trillion in 2025.57 Precious metals Precious metals are valued for their scarcity and used as hedges against inflation and economic uncertainty. The tokenization of precious metals, particularly gold, has become a significant use case in financial markets. The total capitalization of the physical gold market, excluding the jewellery market, is estimated at $5 trillion in 2024.58 While traditional methods of investing in gold, such as physical gold, coins and ETFs, have existed for years, tokenization offers a unique opportunity to broaden access to gold. Several organizations have introduced gold- backed digital tokens, including Paxos, Tether, WisdomTree and HSBC. The following opportunities are presented with gold-backed tokens: 1. Expands accessibility Gold-backed tokens make it possible for investors to purchase fractional amounts, lowering the entry barrier and enabling a wider range of participants – such as retail investors – to gain gold exposure. 2. Enhances user-centricity Through mobile applications and more flexible custodial arrangements, the ease of holding gold or the exposure to gold improves as compared to investing in gold today. 3. Promotes multi-asset mobility Tokenization of gold could allow free usage as collateral without traditional limitations such as storage.59 As highlighted in the section on backed tokens, gold-backed tokens are not without their hurdles and risks. A leading challenge is integrating physical and digital worlds, especially securing and storing metal or stone.60 Today’s model relies heavily on custodians’ safekeeping and auditors verifying reserves, potentially creating concentration risk. Due to operational challenges, not all gold-backed token providers offer physical redemption. Fractional ownership is possible, but physical redemption depends on the issuer. Gold-backed tokens’ continuous, 24/7 nature can cause price dislocations when integrated with conventional markets, which operate only Monday through Friday. Tokenized assets Source: RWA.xyz (2025)FIGURE 11 Tokenized commodities by product Paxos’ PAXG and Tether’s XAUT, both tokenized gold products, account for 99% of the tokenized commodity market PAXG XAUT Tokenized Gold (Others) Tokenized Silver (TXAG) Tokenized Platinum (TXPT)$1,400M $1,200M $1,000M $800M $600M $400M $200M $0M Mar 21Jun 21Sep 21Dec 21Mar 22Jun 22 Dec 22Sep 22 Mar 23Jun 23Sep 23 Mar 24Jun 24Sep 24 Mar 25Dec 24 Dec 23