London Metal Exchange explores tokenizing off-warrant metal to boost revenue

London Metal Exchange explores tokenizing off-warrant metal to boost revenue

The exchange is studying how digital tokens could represent metal in Hong Kong warehouses, with a pilot planned for 2027

The London Metal Exchange is looking at putting metal on a blockchain. Specifically, it is exploring the tokenization of off-warrant metal held in Hong Kong warehouses, with the goal of supporting financing and opening up a fresh revenue stream.

The idea was outlined by LME executive Hugo Brodie at the Tokenised Markets and Money Conference on October 23, 2026. According to the research findings, the exchange plans to pilot its tokenization efforts in 2027.

Nothing is live yet. No tokens exist, and no tokenized products have launched. For now, this is a study, not a product rollout.

What the LME actually wants to tokenize

On the LME, a warrant is the document that represents ownership of metal sitting in an exchange-approved warehouse. Off-warrant metal is inventory stored outside that formal system. It exists physically, but it does not carry the same standardized paperwork that exchange-registered stock does.

The LME’s stated aims fall into a few buckets:

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