Tokenized SLV Volume Jumps 1,200% as Silver Hits Records, Crypto Flocks to RWAs

Tokenized silver trades surge as metal hits new highs, drawing crypto investors into RWA markets Interest in silver is spilling onto blockchains as the metal’s price volatility drives a dramatic uptick in tokenized trading. Onchain activity for a tokenized version of the iShares Silver Trust (SLV) has exploded in the past month, mirroring heightened volume in futures and ETFs as silver posts successive record highs. Key onchain moves - RWA.xyz reports the monthly transfer volume for its tokenized SLV has climbed more than 1,200% over the last 30 days. - Holder counts for the token are up roughly 300%, while the token’s net asset value has risen by nearly 40%. What’s tokenization doing here? Tokenization converts real-world assets—commodities, real estate, private equity—into blockchain-based tokens. That process makes traditionally illiquid assets more fractionalized and tradable 24/7. In this case, the tokenized silver trust gives non-U.S. investors round-the-clock access to SLV, with onchain minting, redemption and transfers that bypass normal market hours and some geographic frictions. Why markets are diverging Physical silver markets and paper futures are showing sharp price splits. Reports point to double-digit premiums for physical metal in parts of Asia versus COMEX futures, while London’s forward curve is in backwardation—meaning today’s spot price (around $80/oz) is higher than prices for future delivery, a classic sign of near-term supply stress. Drivers behind the rally Analysts attribute the squeeze to a mix of supply constraints, structural demand and macro forces: - China has said it will impose export licensing on refined silver from Jan. 1, which has amplified supply concerns. - Higher futures margins and year-end positioning have added friction in traditional venues. - Industrial demand—especially from photovoltaic (solar) manufacturing—remains strong and largely inelastic, even after prices have more than tripled from 2024 levels. What this means for crypto and RWAs Silver’s simultaneous rally across TradFi venues and tokenized markets underscores growing appetite for onchain representations of real-world assets. For crypto participants, tokenized commodities offer new ways to gain exposure, improve settlement efficiency and enable fractional ownership. At the same time, rising activity highlights the importance of custody, compliance and settlement infrastructure as RWA adoption scales. Bottom line: As physical market stress pushes premiums and backwardation, traders and investors are increasingly turning to tokenized vehicles—suggesting tokenized RWAs are moving from niche experiments toward mainstream market plumbing. Read more AI-generated news on: undefined/news