Tokenizing off-warrant metal inventories creates digital assets backed by physical metal held in third-party escrow, establishing standardized collateral arrangements where standard financing was previously limited.

From the articleLondon Metal Exchange Weighs Tokenizing Metals in Hong Kong Warehouses, Plans Private Meeting Early Next MonthAlso in London Metal Exchange eyes tokenized metals to unlock financing from Hong Kong warehouses, London Metal Exchange Tokenizes Reserves to Unlock New Financing