Tokenized Precious Metals: Beyond Gold

Key Takeaways

• Gold tokenization is now a market of more than $5 billion (CoinGecko, Oct 2026), dominated by established products like PAXG and XAUT - but silver, platinum, and palladium remain largely untokenized.
• Tokenized silver is the most developed non-gold category, with products like Kinesis KAG and Lode AGX offering physically backed digital ownership.
• Tokenised palladium and platinum face unique tokenization challenges: smaller markets, concentrated supply chains, and lower retail liquidity.
• Non-gold precious metals carry distinct industrial demand profiles - silver in solar energy, platinum in hydrogen fuel cells, palladium in catalytic converters - that create different investment dynamics from gold’s store-of-value positioning.
• Regulatory frameworks including MiCA in Europe and MAS rules in Singapore can apply to commodity-backed tokens depending on how they are structured, though coverage varies by jurisdiction.

Gold tokenization is now well-established. Products like Paxos Gold (PAXG) and Tether Gold (XAUT) have built a combined market of more than $5 billion (CoinGecko, 7 Oct 2026), giving investors fractional, blockchain-based access to vaulted physical gold. Each PAXG token, for example, represents one fine troy ounce of a London Good Delivery gold bar (Paxos). For a detailed breakdown of how gold tokenization works, see our guide to gold tokenization.

But gold is only one of four major precious metals traded globally. Silver, platinum, and palladium each carry distinct supply dynamics, industrial demand profiles, and investment characteristics - yet their tokenization stories are far less developed. For institutional investors, wealth managers, and fintech platforms evaluating multi-asset digital strategies, understanding where these metals stand in the tokenization lifecycle is essential.

Watch the explainer: Tokenized Precious Metals Explained: Gold, Silver and Platinum

Tokenised Silver: Market Size, Products, and How It Works

Silver occupies a unique position among precious metals. Unlike gold, which derives most of its value from investment demand and central bank reserves, silver functions as both an investment asset and an industrial commodity. About 58% of annual silver demand comes from industrial applications, including solar panels, electronics, and automotive components: industrial demand was 657.4 million ounces of 1.13 billion ounces of total demand in 2025 (The Silver Institute, World Silver Survey 2026).

This dual role makes tokenized silver a fundamentally different proposition from tokenized gold. When investors hold a silver token, they are exposed not just to monetary policy and inflation hedging, but also to manufacturing cycles, green energy adoption rates, and semiconductor demand.

Current Tokenized Silver Products

Several platforms have launched silver-backed digital tokens, though the market remains significantly smaller than its gold counterpart - CoinGecko’s tokenized silver category was worth less than $250 million in early October 2026, most of it KAG (CoinGecko, 7 Oct 2026):

• Kinesis KAG - Each KAG token is backed by one ounce of silver bullion held in insured, audited vaults (Kinesis; CoinGecko). Kinesis operates a yield-bearing system where KAU and KAG holders share in 15% of Kinesis transaction fee revenue (Kinesis).
• Lode AGX - Available on the Avalanche blockchain (Lode), each AGX represents one gram of unallocated, investment-grade silver. Redemption into physical silver is limited to qualified bullion dealers or individuals, in multiples of 100-troy-ounce bars (Lode AGX terms).

How Silver Tokenization Works

The mechanics mirror gold tokenization in most respects. An issuer acquires physical silver meeting recognized purity standards (typically at least .999 fine silver, the wholesale market standard per the LBMA), deposits it in an audited vault facility, and mints a corresponding number of digital tokens on a public blockchain. Each token represents a defined weight of silver - typically one troy ounce or one gram, depending on the platform.

Token holders can trade their positions on supported exchanges, transfer tokens peer-to-peer, or in some cases request physical redemption of the underlying silver. The blockchain provides a transparent ownership record, while the custodial arrangement ensures the physical backing is maintained and independently verifiable.

Can you buy fractional silver tokens? Yes. One of tokenization’s primary advantages is divisibility. A single KAG token representing one ounce of silver (about $60 at early-October 2026 prices (CoinGecko, 7 Oct 2026)) can be divided into smaller units on-chain, allowing investors to gain silver exposure with minimal capital outlay - something that physical silver bars or coins do not efficiently permit.

Tokenized Silver vs Traditional Silver Investment

Feature	Tokenized Silver (e.g., KAG)	Physical Silver (Bars/Coins)	Silver ETFs (e.g., SLV)
Minimum investment	Fractional (sub-$1 possible)	One ounce at spot (about $60 in early Oct 2026) plus dealer premium	1 share (about $55 in early Oct 2026)
Storage costs	Varies by issuer; often built into platform fees	Self-custody or vault rental	Sponsor fee (0.50%)
24/7 trading	Yes (blockchain-native)	No (dealer hours)	No (exchange hours)
Physical redemption	Offered by some issuers, often with minimum bar sizes and fees	Already physical	Not available for retail
Counterparty risk	Issuer and custodian	Self-custody eliminates	Fund manager and authorized participants
DeFi compatibility	On some platforms	No	No
Settlement speed	Minutes for on-chain transfer; redemption into metal takes longer	Days (longer for physical delivery)	T+1

Sources: silver price from LBMA Precious Metal Prices (LBMA Silver Price, 7 Oct 2026); SLV price and 0.50% sponsor fee from iShares (6 Oct 2026); SLV redemptions limited to authorized participants per the iShares Silver Trust prospectus; Lode redemption terms from Lode; US T+1 settlement since 28 May 2024 per the SEC.

Tokenised Platinum and Palladium: Industrial Metals Meet Digital Ownership

Platinum and palladium present a markedly different tokenization landscape. While silver has attracted several issuers and a growing user base, platinum and palladium tokenization remains in an earlier stage of development. Understanding why requires examining these metals’ unique market characteristics.

Platinum: Supply Concentration and Hydrogen Potential

Global platinum supply is highly concentrated. South Africa produces approximately 70% of the world’s mined platinum, with Russia and Zimbabwe accounting for most of the remainder (USGS Mineral Commodity Summaries 2026, 2025 estimates). This geographic concentration creates supply risk that does not exist with gold or silver, which are mined in many countries, led by China and Russia for gold and Mexico for silver (USGS Mineral Commodity Summaries 2026: gold, silver).

Automotive is platinum’s single largest demand segment, at 36-44% of total demand over the last five years (World Platinum Investment Council), mainly through autocatalysts (catalytic converters, particularly in diesel vehicles). Hydrogen fuel cell technology is a potential growth area: proton exchange membrane (PEM) fuel cells use a platinum catalyst (WPIC), which links platinum demand to the pace of hydrogen adoption.

From a tokenization perspective, the platinum market is substantially smaller than gold or silver. Annual mined platinum production was an estimated 170 metric tons in 2025, compared with about 26,000 metric tons of silver and 3,300 metric tons of gold (USGS Mineral Commodity Summaries 2026: platinum-group metals, silver, gold). This smaller market creates liquidity challenges for token issuers: fewer market participants, wider bid-ask spreads, and less price discovery infrastructure.

Palladium: Geopolitical Risk and Automotive Demand

Palladium’s market dynamics are even more concentrated than platinum’s. Russia accounted for about 44% of global mined palladium in 2025, with South Africa producing another 37% (USGS Mineral Commodity Summaries 2026). Geopolitical disruptions - particularly those affecting Russian exports - have historically caused sharp price spikes, with palladium reaching a record of about $3,440 per ounce on 7 March 2022 before retreating (CNBC, 7 Mar 2022; Just Auto).

Johnson Matthey data in the abrdn Palladium ETF Trust 10-K show autocatalysts accounted for 83-86% of palladium demand each year from 2015 to 2023. This makes palladium’s value proposition tightly coupled to gasoline vehicle production, and Johnson Matthey expects automotive palladium demand to contract in 2026 in line with lower production of gasoline cars (Johnson Matthey, May 2026).

Why are fewer platforms offering tokenized platinum and palladium? The answer is primarily market size and liquidity. Token issuers need sufficient trading volume to justify the operational costs of vault storage, auditing, blockchain infrastructure, and regulatory compliance. Gold’s massive market (about 222,600 tonnes of above-ground stock worth roughly $29 trillion at end-Q2 2026, according to the World Gold Council) and silver’s broad industrial demand base support robust tokenization ecosystems. Platinum and palladium’s smaller, more concentrated markets have not yet attracted the same level of issuer interest.

That said, the vaulting, issuance and custody infrastructure built for gold and silver tokens could in principle be extended to platinum-group metals as institutional demand develops.

Why Non-Gold Precious Metals Are Being Tokenised

The trend toward tokenizing silver, platinum, and palladium is driven by several converging forces that extend beyond the investment rationale for any single metal.

Industrial Demand and the Green Energy Transition

The energy transition is reshaping precious metals demand in ways that gold - primarily a monetary and ornamental metal - does not directly participate in:

• Silver is used in photovoltaic cell manufacturing, though the amount used per panel is falling. The Silver Institute’s World Silver Survey 2026 (April 2026) projects industrial demand to fall a further 3% in 2026, mainly because of slowing PV offtake as thrifting and substitution reduce silver use per panel (The Silver Institute).
• Platinum is the catalyst that powers hydrogen fuel cell vehicles and PEM electrolysers (WPIC). As governments pursue national hydrogen strategies, this could become a more meaningful source of platinum demand if those strategies scale.
• Palladium faces a more complex outlook, with automotive catalyst demand expected to contract alongside lower gasoline car production (Johnson Matthey, May 2026), while electronics and chemical processing provide smaller sources of demand.

Supply Constraints and Geographic Risk

Unlike gold, which has been accumulated in central bank reserves and private holdings for centuries, platinum-group metals face genuine supply constraints. Mining output is concentrated in a small number of jurisdictions, some with significant political or logistical risk. Tokenization does not resolve supply-side constraints, but it can improve capital allocation efficiency by enabling more granular investment exposure and faster settlement.

Portfolio Diversification Beyond Gold

For wealth managers and institutional allocators, non-gold precious metals offer correlation profiles that differ from gold. Silver tends to be more volatile and more closely correlated with industrial cycles. Platinum and palladium respond to sector-specific demand drivers (automotive, hydrogen) rather than the monetary policy and safe-haven dynamics that primarily move gold prices. For analysis of how central bank gold accumulation and reserve diversification are reshaping the precious metals investment landscape, see BRICS vs USD: What’s Happening to Global Reserves.

What precious metals can be tokenized? In principle, any metal with verifiable vault storage, recognized purity standards, and a liquid spot market can support tokenization. The practical requirements are custodial infrastructure, regulatory clarity, and sufficient market demand to sustain a token ecosystem.

Comparing Tokenised Precious Metals: Gold vs Silver vs Platinum vs Palladium

Characteristic	Gold	Silver	Platinum	Palladium
Above-ground stock	About 222,600 tonnes mined in history (about $29 trillion, end-Q2 2026)	About 1,395 Moz identifiable bullion stocks (end-2025)	About 1,745 koz above-ground stocks (end-2025)	No published estimate
Annual mine production (2025 est.)	About 3,300 tonnes	About 26,000 tonnes	About 170 tonnes	About 190 tonnes
Primary demand driver	Store of value, central banks	Industrial (about 58%), investment	Automotive (largest segment); hydrogen fuel cells an emerging use	Autocatalysts (80%+)
Tokenized market maturity	Established (more than $5B)	Early growth (less than $250M)	Nascent	Nascent
Key tokenized products	PAXG, XAUT, KAU	KAG, AGX	Limited offerings	Very limited offerings
Min. investment (tokenized)	Fractional	Fractional	Varies by platform	Varies by platform
DeFi integration	Ethereum-based; trades mainly on centralised exchanges, with some DEX pools	Limited (select platforms)	Minimal	Minimal
Supply concentration risk	Low (top five producers about 40%)	Low-moderate (Mexico about 24%)	High (South Africa about 70%)	High (Russia about 44%, South Africa about 37%)
LBMA price (7 Oct 2026)	Over $4,000/oz	About $60/oz	About $1,620/oz	About $1,120/oz

Sources: above-ground gold stock from the World Gold Council; silver identifiable bullion stocks from The Silver Institute, World Silver Survey 2026; platinum above-ground stocks from the WPIC Platinum Quarterly Q2 2026 (the silver and platinum measures are narrower than the gold figure, which counts all gold ever mined); mine production and supply shares from USGS Mineral Commodity Summaries 2026 (gold, silver, platinum-group metals); silver demand split from The Silver Institute, World Silver Survey 2026; platinum demand from the World Platinum Investment Council; palladium autocatalyst share from Johnson Matthey data in the abrdn Palladium ETF Trust 10-K (see also the Johnson Matthey PGM market reports); tokenized market values from CoinGecko (gold, silver, 7 Oct 2026); prices from LBMA Precious Metal Prices (LBMA Gold Price PM, LBMA Silver Price, LBMA Platinum and Palladium Prices PM, 7 Oct 2026); USGS shares calculated from its 2025 mine production estimates.

The table illustrates a clear maturity gradient. Gold tokenization has achieved product-market fit with multiple competing issuers, deep liquidity, and established exchange listings - a trajectory explored in depth in our analysis of the rise of digital gold. Silver tokenization is in an early growth phase with established products but lower adoption. Platinum and palladium remain nascent, with few dedicated tokenized products and limited secondary market infrastructure.

For a detailed analysis of gold tokenization specifically, including how PAXG and XAUT compare, see our gold tokenization explainer.

Regulatory Considerations for Tokenised Commodities

The regulatory treatment of commodity-backed tokens varies significantly by jurisdiction, and the framework is evolving rapidly. Unlike unbacked cryptocurrencies, tokens representing ownership of physical precious metals generally fall under existing securities or commodities law - though classification is not always straightforward.

Europe: MiCA and Commodity-Referenced Tokens

The EU’s Markets in Crypto-Assets Regulation (MiCA) fully applied from 30 December 2024. National transitional periods for existing crypto-asset service providers ran to 1 July 2026 at the latest, and some member states set shorter ones (ESMA). MiCA establishes a framework for crypto-assets including asset-referenced tokens. Commodity-backed tokens may be classified as asset-referenced tokens (ARTs) under MiCA, subjecting issuers to reserve requirements, redemption rights, and ongoing disclosure obligations. The specific treatment depends on the token’s structure and the rights it gives holders, and ESMA has issued guidelines on when crypto-assets qualify as financial instruments instead.

Singapore: MAS Digital Token Framework

The Monetary Authority of Singapore (MAS) regulates digital tokens under the Payment Services Act (PSA) and, where applicable, the Securities and Futures Act (SFA). Digital payment token services such as custody, transfer and exchange fall under the PSA (MAS). Tokens that constitute or represent capital markets products fall under the SFA, and MAS assesses this based on the token’s structure, characteristics and attached rights (MAS Guide on the Tokenisation of Capital Markets Products, updated 14 Nov 2025).

Cross-Jurisdictional Considerations

Are tokenized precious metals regulated? Increasingly, yes. The EU (MiCA) and Singapore (SFA or PSA, depending on structure) have frameworks, but treatment varies by jurisdiction and token design. The specific regulatory treatment depends on the token’s structure, the issuer’s jurisdiction, and how the product is marketed and distributed. Key considerations include:

• Reserve requirements - In the EU, MiCA requires issuers of asset-referenced tokens to hold a reserve of assets and to have it independently audited every six months (MiCA, Regulation (EU) 2023/1114, Article 36). Elsewhere, including Singapore, reserve duties depend on how the token is classified.
• Redemption rights - MiCA gives holders of asset-referenced tokens a right of redemption at all times (Article 39). Outside the EU, redemption terms are usually set by the issuer’s own terms and conditions.
• Disclosure and reporting - Issuers face ongoing obligations around reserve transparency, conflict of interest management, and material change notification.
• Cross-border distribution - Tokens issued in one jurisdiction may face additional requirements when offered to investors in other markets.

For fintech platforms and financial institutions building multi-asset digital offerings, understanding these regulatory requirements at the infrastructure level is a prerequisite for product development.

The Infrastructure Layer

Tokenizing precious metals - whether gold, silver, platinum, or palladium - requires a consistent set of infrastructure components: custodial arrangements with recognized vault operators, blockchain issuance and management systems, trading and settlement infrastructure, and regulatory compliance frameworks across target jurisdictions.

Platforms like Aerapass provide the exchange technology and integrate with regulated custodians, so financial institutions and wealth managers can offer tokenized commodity products alongside traditional asset classes. This infrastructure-first approach allows multiple product issuers to operate on shared rails, reducing the cost and complexity of bringing new tokenized metals to market.

As the tokenization of non-gold precious metals matures, the infrastructure challenge will shift from proving the concept to scaling it - supporting multi-metal portfolios, cross-chain interoperability, and regulatory compliance across jurisdictions.