Tokenized Commodities Market Soars Past $1.3B as Investors Flock to RWAs

The tokenized commodities market has surged over the past month as real-world assets (RWAs) continue to attract investor interest.

As of April 4, the sector's market capitalization stands at $1.34 billion, reflecting a 12% increase over the past month, according to RWA.xyz. Monthly transfer volume has climbed 20% to $712 million. Paxos Gold leads with a market cap of $703 million, followed by Tether Gold at $619 million, while Comtech Gold rounds out the top three at $11 million.

This growth suggests rising investor demand for tokenized commodities, with gold leading the way as it surges to all-time highs above $3000/oz. It also highlights the blockchain's expanding role in making commodity trading more accessible and efficient.

"In times of uncertainty, gold is always the go-to safe haven asset,” Kevin Rusher, founder of RWA lending and borrowing ecosystem RAAC, told The Defiant. “Today, we are lucky enough to have tokenized gold, which means crypto natives can access the yellow metal in a way they trust and can dampen volatility in their portfolios.”

Rusher explained that the surge in tokenized commodities and RWAs is driven by growing demand from crypto traders seeking stability, aiming to diversify their portfolios and hedge against major market swings, much like traditional finance (TradFi) traders.

“Drivers toward tokenized gold and traditional gold - whether in the form of jewelry or ETF ownership – are the same,” Rushner said. “It is a move toward the world's safest asset in a highly uncertain economic environment.”

He noted that tokenized gold in its current form is simply another onchain investment option — one that’s particularly appealing to crypto-native investors.

Spot Gold and Gold Futures

The rise in tokenized gold reflects a broader rally in the physical gold market. Spot gold hit an all-time high of $3,160 on April 2, following the Trump administration’s announcement of global tariffs. As of now, gold is trading at $3,035—down nearly 3% in the past 24 hours but still up 4% over the last month.

Gold futures have followed a similar trend, rising 5% over the past month. Currently, futures are trading at $3,051, down 2% on the day.

“In times like these, risk-off investors typically have three choices: cash, gold, or treasuries, and if your choices are limited to the US dollar, US treasuries, or gold right now, gold is probably your best bet,” Rushner explained.

Some analysts are even predicting a rally to $3,500 per troy ounce — though the sustainability of such a rally remains in question.

“While tariff concerns have driven the rally in gold’s price to historic all-time highs in Q1, it’ll be interesting to see the resulting impacts of these tariffs going into effect both on gold markets and other ‘store of value’ assets,” said Michael Petch, co-founder and president of Argo, a digital precious metals investment platform.

Petch emphasized that investor appetite could shift once tariffs are fully enacted and no longer a looming threat.

The Rise of RWAs

As crypto matures, RWAs are emerging as one of DeFi’s fastest-growing sectors, offering a bridge between digital assets and real-world value.

According to RWA.xyz, the total market cap of tokenized real-world assets has climbed to $19.7 billion — an 8.4% increase over the past month. The number of asset holders also rose 6.16% during that period, reaching 93,561.

“As the RWA sector evolves, we’ll see more commodities come on-chain with added utility — including the ability to earn yield on assets like gold,” said Rusher. “Aave’s recent pivot toward RWAs shows DeFi is beginning to prioritize long-term stability over just chasing bull market gains.”