Title and segregation
The goods belong to the SPV, are identified, and are kept apart from anyone else's stock.
Commodities
Raise money on goods in storage by letting investors own a share of them.
Metals, agricultural stock and other stored goods can back small units that many investors hold, so your business can raise money on the stock it keeps. The value depends entirely on the goods behind it, so the deal is built around custody, audits and redemption. You run the offering, the investor register and redemptions on the Asset Tokenization platform, and our team helps set up the structure and the rules.
- Typical vehicle
- SPV holding title to stored goods
- Typical instrument
- Notes or certificates backed by the goods
- Key design point
- Custody and independent audit
What owners want
Smaller units of a physical asset, with the backing visible
Holders of stored commodities, traders and producers usually want to reach investors who want exposure to the goods themselves, not to a company. They want to sell in smaller units, keep a register that matches the stock, and offer a clear route to redemption, either in cash or, where practical, in the goods.
Investors will ask one question first: are the goods there, and are they mine? Everything in the structure has to answer it.
Typical structure
- Vehicle
- An SPV that holds title to specific, identified goods.
- Storage
- An independent warehouse or vault, with goods segregated and insured.
- Instrument
- Notes or certificates, each linked to a stated quantity of the goods.
- Audit
- Regular independent counts, with results published to holders.
- Redemption
- Cash at a stated reference price, or physical delivery above a minimum size, as set in the terms.
- Costs
- Storage, insurance and audit costs, and how they are charged to holders.
What investors look for in commodity-backed securities
Independent custody
A warehouse or vault operator that is not the issuer, with insurance in place.
Regular audits
Counts by an independent party, reported on a schedule investors can check.
Quality and grading
The grade or specification of the goods, and who certifies it.
Redemption terms
How and when holders can redeem, and at what reference price.
The rules that usually apply
How a commodity-backed instrument is treated varies more than most asset classes. In many jurisdictions, a note or certificate backed by goods is a security, with the usual prospectus or exemption rules. In others, it may fall under separate regimes for commodities or derivatives. Perishable goods add food safety and storage rules.
Our standard is a digital security, so the first question in the structure work is whether the instrument qualifies as one in your chosen jurisdiction. Qualified counsel confirms this before anything is built.
When tokenization is not the right tool
- The goods cannot be held by an independent custodian, or cannot be kept segregated.
- Storage and insurance costs would take most of the value for small holders.
- The goods are perishable and would need to be sold before investors could realistically redeem.
- The instrument would not qualify as a security in the jurisdiction you need.
Expert setup and support for commodities
Included in onboarding or added as you need them, around the platform you run.
Structure & jurisdiction
Title, custody arrangements and how the instrument is classified. Structure & jurisdiction
Feasibility review
A written Go, Conditional Go or No-Go in one week, with custody and classification checked early. Feasibility review
Distribution & ongoing management
Redemptions, register changes and publishing audit results to holders. Distribution & ongoing management
Questions we get about commodities
Can investors take delivery of the goods?
Only if the terms allow it. Physical delivery is usually limited to a minimum size, with cash redemption for smaller holdings.
Who holds the goods?
An independent warehouse or vault operator, under an agreement with the SPV. Asset Tokenization does not store goods or act as custodian.
Does the security track the market price?
Its value depends on the goods and the redemption terms. We do not set or promise a price, and a trading venue is a separate step.
Summaries of public frameworks, not legal advice. Structures are confirmed and executed by qualified local counsel. Asset Tokenization is a technology and advisory provider and does not act as issuer or custodian.
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