Commodities — Gold & Metals
On-chain representations of vaulted precious metals and other commodities. Maintain spot-like exposure with transparent custody and programmable transfer rules under venue policies.
Overview
Tokenized commodities (e.g., gold, silver) represent title to specific vaulted bars or pooled metal accounts. Tokens mirror the economics of the underlying (spot or near-spot) while enabling faster settlement, fractional ownership, and on-chain transfer restrictions aligned with KYC/AML and venue rules.
Why tokenize commodities
- Access & fractionalization: smaller lots and 24/7 digital settlement.
- Operational efficiency: reduced paperwork for transfers/redemptions; auditable on-chain records.
- Programmability: whitelists, geography rules, and redemption logic encoded in the token.
- Transparency: provenance and bar lists can be published and hashed on-chain.
Legal & compliance (high-level)
- Classification: typically a claim on custody (warehouse receipt / entitlement). In some wrappers it may be a security; venue rules apply.
- Offering/venue: distribution via compliant marketplaces or wrapped ETP/ETN structures.
- Transfer controls: whitelisted wallets; country/investor eligibility filters.
- KYC/AML: investor onboarding and monitoring; redemption checks.
- Docs: custody terms, redemption policy, fee schedule, audit/assay reporting, (if security) offering docs.
Note: exact treatment varies by jurisdiction and structure (receipt vs. security wrapper).
Common structures
- Vaulted receipt (allocated): token maps to specific serial-numbered bars held by a custodian; redeemable per policy.
- Pooled account (unallocated): token tracks a share of a pooled metal account with periodic audits.
- Wrapper / ETP style: security wrapper providing programmatic exposure to spot metal via custodied reserves.
Custody & provenance
- Custodians & vaults: named providers with bar lists and inspection/audit cadence.
- Provenance data: refinery, serials, weight, fineness; hashes anchored on-chain.
- Redemption: whole-bar or minimum-lot policies; shipping/insurance terms disclosed.
- Fees: storage, management/wrapper, and redemption fees transparent in docs.
Platforms working with Gold & Metals
21Shares
Wrapper/index provider offering on-chain exposures to commodities and RWAs.
Tokeny
European tokenization stack used for compliant commodity receipts and wrappers.
SDX
Institutional DLT venue with support for tokenized securities and commodity products.
Bitfinex Securities
Regulated platform listing tokenized instruments, including commodity-linked issues.
INX
Securities marketplace supporting tokenized offerings and secondary trading.
Key risks
- Legal characterization: receipt vs. security wrapper affects marketing and disclosure.
- Custody & redemption: counterparty risk at the vault; logistics and minimum redemption sizes.
- Tracking error: wrapper/fee drag vs. spot; audit cadence matters.
- Liquidity: venue depth varies; off-hours spreads possible.
- Smart-contract: mint/burn and provenance logic must be auditable and upgrade-governed.
Explore further
Interested in tokenized gold and metals? See the full list of platforms, or continue with our guides on structuring and custody.