The future of tokenised commodities

Imagine owning part of a gold bar in a high-security vault halfway around the world, or a barrel of oil that can be swapped or traded immediately with a push of a key on a computer. A blockchain-based digital token lets you verify the asset's existence, authenticate your ownership and utilise it in financial transactions without you needing to worry about seeing, storing or insuring it. Commodity tokenisation converts tangible goods into digital representations that may be stored, transferred and traded with anyone in almost real time. Technically, tokenisation creates a digital token for an item such as gold, oil or agricultural commodities. Each blockchain-based token is backed by a physical object and has the transparency, speed and programmability of decentralised finance. Take PAXG, for instance. This token represents one Troy ounce of gold, stored in an independent vault. When you hold a PAXG token, you legally own a slice of the physical gold itself and you are free to trade it…