Rhodium is one of the rarest metals on Earth—far rarer than gold or silver—and yet it plays a critical role in modern life. Most people never see it, but without rhodium, today’s emissions standards would be nearly impossible to meet.
As real-world assets (RWAs) move onto blockchain rails, it is natural to ask: Can rhodium be tokenized?
After digging into its supply structure, price behavior, and industrial demand, the answer—for now—is not really.
Rhodium is:
Almost entirely a byproduct metal
Geographically concentrated in a handful of countries
Extremely volatile, with thin and opaque spot markets
Driven by regulation, not investor demand
Tokenization works best where liquidity, transparency, and broad participation already exist. Rhodium meets none of those conditions today.
That does not mean rhodium has no digital future. In a mature RWA ecosystem, tokenized rhodium may emerge quietly—used by industry players for settlement, inventory finance, or compliance rather than speculation.
Not every metal belongs on a blockchain. And rhodium reminds us that “not yet” is sometimes the most honest answer.
Prior to entering the metal space, I assumed only gold and silver were considered precious metals. Wrong. Rhodium is a precious metal, as are all members of the platinum group metals, of which rhodium is a part. However, rhodium sits at the extreme edge of the precious-metals universe. Unlike metals traditionally associated with wealth preservation or adornment, rhodium lives almost entirely in the industrial shadows—embedded deep inside technologies that modern life depends on, yet rarely seen or discussed by investors. That combination of scarcity, opacity, and industrial dependence makes rhodium fascinating, essential—and, at least for now, an uneasy fit for tokenization..
As real-world assets (RWAs) migrate onto blockchain rails, the natural question arises: can an ultra-rare, thinly traded metal like rhodium realistically function as a tokenized asset? Or does its very rarity make it unsuitable for digital abstraction?
Tag along to explore that question in depth.
What Is Rhodium
Let’s start with a bit of metallurgy. Rhodium is a silvery-white, highly reflective metal. It belongs to the platinum group metals (PGMs), alongside platinum, palladium, iridium, ruthenium, and osmium. Chemically inert, extremely hard, and highly resistant to corrosion, rhodium possesses physical properties that make it indispensable for certain industrial applications. It may be almost entirely invisible to the public but not to chemists.
Unlike gold or silver, rhodium is not mined for its own sake. Rhodium is a by-product. Of what you ask? Almost exclusively of platinum and nickel mining. If someone is trying to sell you a rhodium mine, run fast because there are no rhodium-only mines! This structural reality has profound implications for supply, pricing, and ultimately, tokenization.
Rhodium is scarce. Annual global production typically measures in the tens of metric tons—not thousands. By comparison, annual gold production exceeds 3,000 metric tons. This extreme rarity has driven rhodium prices to extraordinary levels during periods of supply disruption or regulatory change.
What Is Rhodium Used For
I think of rhodium as a white hat character in the battle to reduce air pollution. After all its primary use—accounting for the vast majority of demand—is in automotive catalytic converters. Its chemical properties make it exceptionally effective at reducing nitrogen oxide (NOx) emissions, a key regulatory target in vehicle exhaust systems.
However, rhodium is not a one-trick pony. Nope. Beyond automotive catalysts, rhodium has several secondary uses:
Chemical processing, where it acts as a catalyst in specialized reactions
Electronics, including electrical contacts and thermocouples
Glass manufacturing, particularly in high-temperature furnace components
Jewelry, almost exclusively as a plating material to enhance durability and reflectivity
What rhodium is not used for is equally important. Central banks are not buyers. Retail investors are nonexistent. There is no such thing as a rhodium-based coin. Rhodium’s value exists almost entirely because modern industry and environmental protection laws require it.
Where Is Rhodium Mined
What do rhodium and Nelson Mandela have in common? Both are from South Africa. That’s why if you want to see where rhodium is most plentiful travel to South Africa. Russia, Zimbabwe, and Canada also are minor producers. In other words, rhodium supply is geographically concentrated and that’s important to keep in mind.
This concentration introduces structural fragility:
Labor disputes in South Africa can disrupt global supply
Energy shortages directly affect mining output
Geopolitical tensions can restrict exports
Environmental regulations can alter production economics
Given rhodium is a byproduct metal, miners cannot easily respond to price signals. Even when rhodium prices spike dramatically, production cannot be ramped up independently. This supply inelasticity is one of the defining features of the rhodium market.
Rhodium’s Price History
Rhodium’s price history is best described as a roller-coaster. Let’s dive into that claim using the last 10 years as the test case.
For years, rhodium traded quietly at relatively modest levels. Then, beginning in the late 2010s, a combination of stricter vehicle emissions standards, declining mine output, and supply disruptions triggered an unprecedented surge. Prices skyrocketed from under $1,000 per ounce to peaks exceeding $20,000 per ounce in a remarkably short period. Somebody made a ton of money during those years! As substitution efforts increased and demand cycles shifted, rhodium experienced sharp declines—often with little warning. Meaning, some speculators went home crying with large losses. This volatility reflects rhodium’s structural characteristics:
Thin spot markets
Limited liquidity
Minimal futures infrastructure
Heavy dependence on regulatory demand
For investors, rhodium behaves less like a monetary metal and more like a highly specialized industrial input with speculative overlays. You are now on notice!
Is Rhodium a Viable Candidate for Tokenization
Tokenization thrives on clarity: clear ownership, clear custody, clear valuation, and clear redemption mechanisms; rhodium has some of those aspects. On the positive side:
Rhodium is high-value and compact, making custody efficient
It has industrial relevance, anchoring demand to real-world use
Its scarcity creates a compelling digital-scarcity narrative
However, significant obstacles exist:
Price discovery is opaque, with limited transparent spot markets
Physical settlement infrastructure is underdeveloped
Liquidity is thin, making fractionalization less meaningful
Regulatory classification is ambiguous, especially for retail access
Tokenized rhodium is theoretically possible. However, we don’t live in the world of theory. Hence, better to say it’s practically complex and probably impossible; at least for now. Any credible implementation would need institutional-grade custody, verified assay processes, and a conservative issuance model. A bridge too far.
Tokenized Rhodium Versus Traditional Rhodium Exposure
Traditional rhodium exposure is limited and inefficient. Investors typically access rhodium through:
Physical bars held via specialized dealers
Indirect exposure through mining equities
Occasionally, structured products in select jurisdictions
Tokenization could improve access by:
Enabling fractional ownership
Providing 24/7 global transferability
Integrating rhodium into broader digital portfolios
Yet tokenization does not solve rhodium’s fundamental liquidity constraints. A token can represent rhodium, but it cannot create market depth where none exists. Unlike gold or silver, rhodium tokens would likely remain niche instruments—used selectively rather than broadly.
Industrial and Supply Use Cases
From an industrial standpoint, tokenized rhodium could serve as:
Inventory financing tools for manufacturers
Supply-chain collateral for automotive producers
Hedging instruments tied to emissions-related demand
In theory, smart contracts could align rhodium tokens with industrial delivery schedules or regulatory compliance metrics. In practice, adoption would require significant coordination between miners, refiners, manufacturers, and regulators—an ambitious undertaking. In other words, unlikely.
Restraints, Constraints, and Realism
Rhodium’s biggest limitation as a tokenized asset is not technological—it is structural. Key constraints include:
Supply that cannot respond to price incentives
Demand driven by regulation rather than consumer choice
Extreme volatility unsuitable for many token investors
Limited public understanding and trust
Tokenization excels where assets are already widely held, liquid, and understood. Rhodium meets none of those criteria today.
Long-Term Outlook: Rhodium’s Digital Role
Rhodium is unlikely to become a flagship tokenized metal. It lacks the monetary history of gold, the industrial breadth of silver, or the transitional narrative of copper. However, that does not mean rhodium has no digital future.
In a mature RWA ecosystem, rhodium tokens could exist as specialized instruments, embedded within industrial finance platforms or emissions-compliance frameworks. They may serve corporations rather than retail investors. They may be used for settlement rather than speculation. In that sense, rhodium’s digital role mirrors its physical one: essential, invisible, and highly specialized.
Tokenized rhodium will not democratize wealth. But it may quietly modernize one of the most critical—and fragile—metal markets in the modern economy.
Until next time,
Yogi Nelson
This post is part of an ongoing weekly series on the tokenization of precious metals, published on BlockchainAIForum and LinkedIn, examining custody, regulation, issuer structure, and settlement infrastructure.
Platinum has been tokenized, albeit in limited and experimental forms, since roughly 2019, but unlike gold and silver, it has yet to see a globally liquid, institutional-grade on-chain breakthrough—making it one of the most compelling “next metals” for tokenization. Of course, we already know tokenized gold first emerged in 2017, when blockchain technology was used for the first time to represent direct ownership of vaulted physical gold on-chain. What about silver? When was it first tokenized? Not surprisingly, after gold, in 2018. One year later came platinum.
Platinum does not rely on tradition, mythology, or monetary nostalgia to justify its relevance. If those factors don’t drive platinum, what does? Platinum matters because modern civilization cannot function without it. Platinum is a quiet essential metal. It is embedded in emissions systems, chemical processing, medical technology, and the emerging hydrogen economy.
Blockchain technology has moved beyond novelty to necessity. What’s more the evolution of blockchain is fantastic news for platinum. That means platinum enters the conversation at precisely the right moment—not as a store of ancient wealth, but as a critical industrial asset whose supply, custody, and pricing demand modernization. Although platinum is clearly different from gold and silver, that doesn’t mean tokenization is not viable, to the contrary. Despite the differences, the bull case for tokenized platinum is strong. Let’s start with a few fundamental differences between the metals.
What Makes Platinum Different
Platinum belongs to the platinum-group metals (PGMs), a family known for exceptional catalytic properties, heat resistance, and chemical stability. Keep those characteristics; they drive the demand for platinum.
Several characteristics distinguish platinum sharply from gold and silver:
Extreme scarcity: annual global platinum production averages under 200 metric tons. Annual production of gold is 3,000 metric tons, while silver is approximately 26,000 metric tons.
Geographic concentration: roughly three-quarters of supply comes from South Africa, with most of the remainder from Russia. Two nations rather than the 194 worldwide!
High production costs: platinum is difficult and expensive to extract and refine
Limited substitution: in many applications, platinum has no perfect replacement
These constraints make platinum uniquely sensitive to supply disruptions, geopolitical risk, and technological demand shifts. Tokenization does not change these fundamentals—but it makes them visible, auditable, and tradable in ways legacy markets struggle to achieve.
Monetary Metal or Industrial Metal? (The Platinum Distinction)
Gold is money, a store of wealth. Period. It is not currency. Silver is a combo platter. It straddles the line between money and industry. It has been, is, and will likely continue to be, money, a currency and industrial metal. Platinum, as with gold, has one primary use. But unlike gold, with its use as money, platinum is industrial, and industrial only. And what are those industrial applications? I’ll give you five:
Catalytic converters for emissions control
Chemical and petroleum refining
Medical devices and pharmaceuticals
Electronics and data storage
Hydrogen fuel cells and clean-energy systems
The upshot is platinum’s price behavior is driven less by investor sentiment and more by regulation, technological adoption, and industrial growth cycles. Tokenization allows markets to better reflect this reality—connecting industrial demand directly with transparent supply and ownership.
Why Platinum Is a Natural Fit for Tokenization
Tokenization solves certain problems and does so exceedingly well, under certain circumstances. Tokenized platinum just so happens to fit the bill. Consider the following:
Scarcity and Verifiability Platinum bars are already standardized, serialized, and assayed. (Assayed means a metal that has been tested for purity, metal content, authenticity, and conformance to standards). This makes platinum bars ideal candidates for 1:1 on-chain representation backed by vaulted physical metal.
Liquidity Constraints Platinum markets are tiny–much smaller than gold or silver. Tokenization enables fractional ownership, global access, and continuous trading without requiring physical delivery. Analogous to COMEX and LBMA markets, but with verified inventories!
Settlement Inefficiencies Traditional platinum trades can involve long settlement cycles and counterparty risk. Blockchain settlement dramatically reduces settlement time to minutes or perhaps seconds, and significantly does away with counterparty risk.
Global Accessibility Tokenized platinum can be accessed without brokerage accounts, national market hours, or legacy intermediaries. On-chain transaction tomorrow means, breaking the chains that limit markets today.
While all that is true, remember tokenization does not reinvent platinum—it modernizes access to it.
Tokenized Platinum vs. Traditional Platinum Products
Platinum exchange traded funds (ETFs) and futures contracts already exist. However, those financial products are abstractions layered atop complex custodial and regulatory structures. In 2026 and beyond, investors want what tokenization offers, specifically:
Direct ownership rather than synthetic exposure
On-chain transparency of reserves and transfers
Programmable compliance and auditability
Global reach independent of local financial infrastructure
Where ETFs represent claims, tokenized platinum represents digitally native possession backed by physical reality. This distinction mirrors the evolution seen in tokenized gold and silver—and completes the progression.
Real-World Use Cases Beyond Investment
Tokenized platinum’s utility extends well beyond speculation.
Industrial Hedging Manufacturers can hedge platinum exposure directly on-chain, reducing reliance on opaque derivatives markets. What you see is what you get!
Supply-Chain Traceability Blockchain tokens can track platinum from mine to refinery to end use, supporting ESG compliance and regulatory reporting. Platinum buyers can be sure of what is happening as it happens.
Corporate Treasury Assets Energy, transportation, and clean-technology firms may hold tokenized platinum as a strategic reserve asset aligned with operational needs. For instance, a car manufacturer may want to buy platinum, put it in storage, and draw it down as needed and where needed, using the blockchain.
On-Chain Collateral Platinum tokens can serve as collateral in decentralized finance systems, anchoring digital credit to physical industry. It’s unlikely a bank will offer a high debt to loan value if the collateral is platinum due to the limited number of potential buyers in case of a liquidation. Nevertheless, for a sophisticated lender, who understands the platinum market well the possibility exist.
This is where tokenization becomes infrastructure, not ideology.
Risks, Constraints, and Realism
Is tokenization risk-free. No way. Nothing is risk-free. In the case of platinum, below are some risk factors:
The market is smaller, increasing volatility
Custody standards must remain rigorous
Regulatory frameworks vary by jurisdiction
Adoption will be gradual rather than explosive
Tokenization does not eliminate these challenges—but it forces transparency, which is often the first step toward stability.
Long-Term Outlook: Platinum’s Quiet Permanence
Gold appeals to philosophy. When gold is strong, that often means geopolitical trouble is brewing. Silver is Mr. Versatility. He can be money. He can be industrial. He can be both. Platinum equals necessity. Platinum isn’t going to dominate headline news in the tokenized metals space—that is not a weakness.
As blockchain infrastructure matures and real-world asset tokenization becomes standard, platinum’s combination of scarcity, industrial indispensability, and constrained supply positions it as a permanent on-chain asset, not a speculative trend. Once tokenized properly, platinum is unlikely to leave the blockchain—because modern industry is unlikely to function without it.
Until next time,
Yogi Nelson
Sources
World Platinum Investment Council (WPIC) – Platinum Quarterly Market Review U.S. Geological Survey (USGS) – Mineral Commodity Summaries: Platinum Group Metals Johnson Matthey – Platinum Group Metals Market Report International Energy Agency (IEA) – Critical Minerals and Clean Energy Transitions World Bank – Minerals for Climate Action
The Tokenization Revolution No One Saw Coming (Except Us)
by Yogi Nelson
For centuries—better said, thousands of years—metals have functioned as the backbone of global trade, monetary systems, industrial expansion, and national security. You want a strong industrial base — you need metals. You want a strong national defense — you need metals. You want to be a world leader in tech — you need metals. You get the picture.
As we commence 2026, the green sprouts of a revolution are emerging. What revolution? Merely the tokenization on the blockchain of the oldest asset class on the planet — that’s all! Gold, silver, platinum, copper, lithium, nickel, cobalt, and even rare earth elements are now entering a transitional phase where ownership, settlement, collateralization, and verification can occur digitally—without compromising the physical integrity or custody of the underlying metal. Finally, a real financial use case for blockchain that doesn’t involve a silly meme coin void of value. But listen, this movement is not a marketing trend. It’s a structural realignment.
It’s true, tokenized metals are still early. However, they are no longer theoretical. Why the claim? Volumes are rising. Institutional interest is accelerating. Regulatory clarity is forming. And underlying technologies—AI, digital twins, satellite monitoring, cryptographic attestations—are modernizing the mining and metals supply chain across its entirety.
Hooked? I am. That’s why I’m proud to publish this first edition of a year-long series designed to help you understand where tokenized metals stand today, how fast they are evolving, and what comes next.
THE TOKENIZED METALS LANDSCAPE 2026
Gold: The First Mover and the Market Leader
Gold was the first major commodity to tokenize and remains by far the largest digital metals market. Gold has become the flagship case study for real-world assets on blockchain. As of early 2026:
– Tokenized gold supply exceeds $1.1–1.3 billion.
– Major issuers maintain audited, on-chain proof-of-reserves.
– Settlement speeds have dropped from days to minutes.
– Gold tokens are increasingly used as collateral in both TradFi and DeFi.
– Sovereign wealth funds and private banks are experimenting with cross-border settlement using tokenized gold.
Silver: The Hybrid Monetary–Industrial Asset
Silver’s tokenized footprint—approaching $200 million—is smaller but growing rapidly. Could silver become the first industrial metal where tokenization gains true operational relevance? If it does, it will be because of:
– Its dual identity as both a monetary metal and an industrial input.
– Volatility that makes it attractive for digital trading.
– Demand for transparent supply chains in solar, electronics, and medical technologies.
Industrial & Energy Metals: The Next Frontier
Lagging behind—but certainly on their way into the tokenization party—are the industrial metals: copper, lithium, nickel, cobalt, graphite, and rare earth elements. Could 2026 be the year industrial metals tokenization shifts from prototypes to production? It’s possible if you consider:
– Blockchain-based EV supply-chain tracking.
– Digital twins of ore bodies.
– On-chain provenance audits.
– Early institutional pilots for tokenized copper and lithium.
WHY TOKENIZED METALS MATTER
Verifiable Physical Backing
Tokenized metals solve longstanding structural problems. A few examples:
– Duplicate or falsified warehouse receipts.
– Fraudulent bars.
– Opaque inventory reporting.
– Slow reconciliation cycles.
Each token represents a precise quantity of metal, which means audits become continuous. Your compliance department will love that. Ownership becomes immutable and transparent. This is not just innovation — it’s risk reduction.
Faster, Global Settlement
Conventional metals markets reflect yesterday’s speed. Today, businesses don’t want 24–72 hours to settle. They want what tokenized metals offer: settlement in minutes, reduced friction, lower operational risk, and far less counterparty exposure.
Interoperability with TradFi and DeFi
Tokenization is what finally lets TradFi and DeFi shake hands and work together. Tokenized metals can function as:
– Collateral.
– Liquidity instruments.
– Components of stable-value portfolios.
– Cross-border settlement tools.
– Programmable assets inside smart contracts.
THE ROLE OF AI AND DIGITAL INFRASTRUCTURE
AI-Driven Discovery and Planning
Until now the focus of this article has been on tokenization. But as the old commercials used to say, “Wait — there’s more.” Combine tokenization with AI and you get advanced:
– Ore detection.
– Geological modeling.
– Predictive maintenance.
– Yield forecasting.
– ESG compliance.
– Mine-safety planning.
Mining is shifting from “drill and hope” to “discover with data.”
Satellite and Sensor-Based Verification
AI closes the trust gap in an industry known for suspicious minds. With remote sensing and IoT devices, metals provenance becomes significantly easier. Why? Because the tech makes metals:
– Traceable.
– Auditable.
– Real-time.
– Fraud-resistant.
REGULATORY MOMENTUM
Functioning markets need clear rules and enforcement. Period. The good news is regulators worldwide are moving toward clearer digital-asset frameworks. Clarity is accelerating adoption — tailwinds now rather than obstacles. Consider:
– The SEC and CFTC refining tokenization guidelines.
– The EU and UK advancing unified RWA standards.
– Asian sovereign funds piloting tokenized metals for FX settlement.
Will the market react favorably to tokenized metals? If tokenization follows the pattern of other assets—and every indicator suggests it will—then yes. Big-time yes. Who is drawn to this emerging market?
– Hedge funds.
– Systematic traders.
– Asset managers.
– Digital-asset allocators.
– Wealth advisors.
Corporations & Treasury
Corporations and treasury teams are also participating in this bullish trend. They are using tokenized metals for:
– Balance-sheet diversification.
– Collateral management.
– Supplier financing.
– Inter-company settlements.
Mining Firms
Mining is an industry begging for modernization. Tokenization delivers part of that modernization. Miners benefit through:
– Lower-cost financing.
– Transparent ESG tracking.
– Real-time inventory visibility.
– Improved supply-chain trust.
– All AI-driven improvements listed earlier.
A STRUCTURAL SHIFT, NOT A TREND
In China, 2026 will be the Year of the Horse. For tokenized metals, 2026 will be the year of tech and AI infrastructure. Horses run fast — tech and AI will enable tokenized metals to run fast for years to come. Expect:
– Gold tokenization becomes mainstream.
– Silver emerges as a hybrid digital–industrial asset.
– Industrial metals advance from pilot to production adoption.
– AI reshapes exploration and operations.
– Regulators provide real structure.
– Institutions embrace digital commodities.
THE JOURNEY AHEAD
Over the next 51 more weeks, this series will explore:
– The mechanics.
– The opportunities.
– The risks.
– The players.
– The economics.
– The geopolitics.
– The technology.
Tokenized metals are entering the global stage. 2026 is the year they become impossible to ignore. I’m glad to have you here for the journey.
There is a massive battle among nation states, central bankers, industrialists, and institutional investors to secure strategic metals supplies. They have driven up the price of precious metals over the last two years, not retail demand. That is well documented. What is new, and under reported, is the advent of a novel manner to demonstrate precious metals ownership–tokenization! That’s why beginning this January, I’ll be publishing the 2026 Tokenized Metal Series. Let me tell you what to expect.
Be prepared to read a one-year weekly series dedicated to the tokenization transformation—of gold, silver, copper, lithium, nickel, cobalt, and metals powering the global economy. A full year of insights on how commodities, AI, mining, and digital finance are converging. Very cool! These assets are now stepping onto blockchain rails, gaining faster settlement, greater transparency, and global portability. The implications are enormous—for investors, miners, manufacturers, and policymakers. The future isn’t just digital currency—it’s digital metals. Who else is offering this? No one other than Yogi Nelson. The costs? Free. What’s not to like.
Why This Series Matters
If you care about global markets, technology, energy systems, geopolitics, or investing, these changes will affect you. Listen, three major shifts are happening simultaneously:
1. Tokenization is moving into real utility.
Real assets—not meme coins—are being digitized on public ledgers. Forget stupid Pepe and his coins or a dog face token worth nothing; I’m talking about tokenized gold!
2. AI is revolutionizing mining.
Exploration, extraction, mapping, and mineral intelligence are evolving faster than most headlines suggest. A lot less drill and hope; a lot more boring and discover.
3. Institutions and regulators are preparing for digital commodities.
Compliance frameworks, custody solutions, and market infrastructure are aligning for the first time.
What You’ll See Each Week in 2026
Each installment of the series will explore one theme, including:
Tokenized precious metals
Industrial and energy metals on-chain
AI-driven mining and robotics
Digital twins of mines
Satellite-based mineral intelligence
Tokenized metals as collateral
Commodity-backed stablecoins
Regulatory developments
Institutional adoption trends
Some essays will be deep dives; others will be quick, engaging reads. All will be grounded in real-world developments.
Who This Series Is For
This series is for those who enjoy big ideas, clarity, and an occasional bad dad joke:
Investors
Financial advisors
Miners and engineers
Metals analysts
Crypto newcomers
Skeptics
Students of markets
Anyone exploring the intersection of technology and real-world assets
January: The Digital Metals Era Begins
Metals built our civilization. Now they’re about to move onto digital rails. Tokenization isn’t replacing commodities—it’s modernizing them. And 2026 will be the year the world finally notices.
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