Analysts expect metals liquidity to spill into crypto and RWAs soon.
Silver (XAG) is outperforming Bitcoin in terms of retail interest, breaking multi-decade records and prompting investors to explore a new frontier: tokenized silver.
With precious-metal liquidity rising, analysts say digital silver may be the next major on-chain asset class.
Silver closed the month at $58, its highest monthly close in 46 years, with retail interest in silver surpassing Bitcoin in global Google Trends.
“Silver just hit $58 and gave its highest monthly close after 46 years. We can see a massive amount of liquidity in US stocks, gold, and now silver. Sooner or later, this will likely flow into riskier assets, such as Bitcoin and cryptocurrencies. The bull market is not over, it’s delayed,” commented analyst Ash Crypto.
The surge reflects a broad shift in capital toward hard assets as global inflation, industrial demand, and supply constraints intensify. At the same time, the Silver-to-Bitcoin Ratio has broken a decade-long downtrend.
This signals a notable shift in how retail and institutional investors evaluate store-of-value assets, setting the stage for the rise of tokenized silver.
Despite XAG price’s momentum, the tokenized silver sector remains underdeveloped. Only a handful of projects, Kinesis Silver (KAG) and Gram Silver (GRAMS) appear on CoinGecko.
Yet fundamentals are strengthening. According to Commodity Block research, tokenized silver is “quickly redefining how investors access and interact with the precious metals market, offering:
The report highlights that the tokenized silver market has reached an estimated capitalization of $200 million, while gold-backed tokens dominate at $2.57 billion.
Silver’s accelerating demand suggests a widening appetite for digital commodities, especially as the iShares Silver Trust (SLV) trades at $52.52, reflecting rising global interest. It is up by almost 3% in pre-market trading.
“Tokenized commodities are shattering traditional ownership models by making physical assets accessible to anyone with an internet connection,” read an excerpt in the report.
The appeal of tokenized silver aligns with a broader trend: the migration of real-world assets (RWAs) onto blockchain.
Silver’s dual role as both an industrial metal (used in electronics, solar, and medical devices) and an investment hedge makes it uniquely positioned for digital adoption.
Key drivers include:
Regulatory clarity remains essential. Jurisdictions such as the UAE, Singapore, and parts of the EU are developing frameworks for digital commodities, while global inconsistencies continue to limit cross-border scalability.
On the other side of the fence, the tokenized gold market now exceeds $3 billion, led by Pax Gold (PAXG), Tether Gold (XAUT), and new institutional products like MKS PAMP’s DGLD.
Silver may follow a similar path if infrastructure, custody standards, and exchange listings continue improving.
With silver prices surging, ratios breaking out, and retail interest climbing, tokenized silver may be poised to become crypto’s next major RWA category.
As liquidity rotates across metals and into digital assets, the question for 2025 is no longer if tokenized silver will grow, but how fast.
