Matrixdock’s silver-backed token XAGm has grown to more than $4.1 million in market value by the end of October 2026, according to Matrixdock product data, as the platform tests a tokenization model that passes the recurring cost of holding physical silver into the token’s on-chain reserve calculation rather than reducing users’ wallet balances.
The product had a circulating supply of 73,060 XAGm tokens, Matrixdock said. Each token launched in March 2026 with a claim on one troy ounce of LBMA Good Delivery silver held in custody. That entitlement now declines gradually through a smart-contract parameter called “ozPerToken,” reflecting an annualized 0.3% custody charge.
The approach addresses a practical issue often overlooked in tokenized commodities: vaulting, insurance, custody and audits remain real expenses even after metal is represented on a blockchain. Silver creates a particularly direct test. Its lower price per ounce compared with gold means a similar dollar-sized position requires substantially more metal by weight and storage volume.
Rather than collecting fees separately or periodically deducting tokens from wallets, Matrixdock’s Fungible Reserve Standard, or FRS, changes the amount of silver represented by each XAGm. Wallet holders retain the same number of tokens, while the ounces of silver associated with each token decrease on a daily schedule set by the protocol’s custody-rate rules.
A declining metal entitlement instead of a token deduction
The ozPerToken figure began at 1 when XAGm launched and falls daily from that level based on the 0.3% annualized fee rate. Matrixdock uses the parameter both to calculate each token’s silver entitlement and to connect the circulating supply with the amount of silver that must be held in reserve.
For a holder, the economic effect resembles an ongoing custody charge paid in silver exposure. A wallet containing 100 XAGm does not lose units over time, but the aggregate number of ounces represented by those 100 tokens gradually declines. The market value of the token will also continue to depend on the global price of silver, secondary-market liquidity and the confidence traders place in the reserve structure.
That design avoids creating multiple classes of otherwise identical tokens. Every XAGm follows the same ozPerToken value, allowing the token to remain interchangeable across wallets and smart contracts. This matters for decentralized-finance applications, where varying redemption claims within a single token often complicate collateral systems, automated market makers and lending pools.
The model does not eliminate the cost of storing silver. It makes that cost visible in the reserve ratio embedded in the token’s mechanics. Users seeking silver price exposure through XAGm would therefore need to account for both movements in the metal price and the protocol’s scheduled reduction in ounces per token.
Bureau Veritas audit adds silver to review
Matrixdock included XAGm in its fourth consecutive semiannual independent reserve audit in July 2026. Bureau Veritas reviewed 574 gold and silver bars held for the platform’s asset-backed products, including 66 silver bars containing a combined 65,934 troy ounces of silver.
According to the Bureau Veritas review cited by Matrixdock, the metal reserves matched the circulating token amount after the applicable ozPerToken calculation was applied. The audit reported $66.09 million of backing for Matrixdock’s gold product and $4.04 million for its silver asset during that review period.
The reserves were held across three custody locations in Hong Kong and Singapore, according to Matrixdock. For asset-backed tokens, audits are only one part of the operational structure: issuers also need issuance records, custody inventory and the on-chain supply calculation to remain aligned as tokens are minted, transferred, redeemed or removed from circulation.
The July review was the first of Matrixdock’s semiannual audits to include XAGm. Its inclusion gave the silver token a reserve check tied specifically to the FRS formula, rather than a simple one-token-to-one-ounce comparison that would become inaccurate as the custody adjustment accumulates.
Sui deployment broadens defi access
Matrixdock expanded XAGm to the Sui network in May, moving the token beyond Ethereum. The deployment was aimed at making the silver-backed asset available for trading, collateral and other defi uses on Sui, while preserving the reserve accounting framework developed for the product.
The cross-chain move places more weight on consistent token accounting. A tokenized commodity can be traded on several networks, but the reserve calculation must continue to refer to the combined supply and the same underlying metal inventory. Otherwise, a chain expansion could fragment the connection between circulating tokens and the custodied asset.
XAGm sits alongside Matrixdock’s XAUm, which is backed by physical gold, and STBT, a tokenized short-term U.S. Treasury product. Each asset carries different operational constraints. Treasury instruments generate interest payments and mature; bullion requires storage, insurance, handling and periodic physical verification. Matrixdock has described the group as an on-chain “reserve layer” based on verifiable real-world assets.
Silver’s addition gives that concept a harder operational case than gold. Gold’s higher value density generally makes custody fees less visible relative to the metal’s price. With silver, the expense of maintaining the physical reserve becomes more material, and FRS turns that expense into a transparent, programmable variable that traders can assess directly before using the token as a long-term holding or defi collateral.
Explore how tokenized assets are evolving with RWAs—start with Toobit’s guide on real-world asset megatrends in 2026.
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