Theo Launches Yield-Bearing Tokenized Silver thSLVR

Onchain finance platform Theo has launched thSLVR, a yield-bearing tokenized silver product backed by more than $40 million in committed active leases, expanding its tokenized commodities business beyond gold.

The New York-based company said thSLVR provides investors with exposure to silver prices while distributing income generated from lending the underlying metal to institutional borrowers. Refiners, mints and industrial manufacturers commonly lease silver to support production needs without taking direct price risk, paying fees before returning an equivalent amount of metal.

Traditionally, this silver lease income has gone primarily to bullion banks and dealers rather than investors holding silver through exchange-traded funds or similar products. Theo aims to bring those lending economics onchain through thSLVR.

The silver backing the token will be leased to established institutional counterparties under standard market terms, with credit exposure supported by a parent-company guarantee. The token will initially be available in beta to institutions and whitelisted investors, with broader access expected later.

The launch comes during a volatile year for silver. Prices surged to a record $121.79 per ounce in January before falling 41% within three days. Silver later dropped to $54.74 in July and has recently traded around the mid-$60 range. Shifting interest-rate expectations, speculative activity and uncertainty surrounding industrial demand have contributed to the swings.

Tokenized commodities currently represent about $4.9 billion in distributed value across 130 products, according to RWA.xyz, with gold-backed tokens from Tether and Paxos dominating the sector. Commodity-token holders have increased 13% over the past month to nearly 339,000.

Theo said tightening physical silver availability could strengthen the importance of lease income. About 83% of silver stored in London vaults is tied up in physically backed investment products, leaving roughly 136 million ounces available for trading and leasing. The silver market is also projected to record its sixth consecutive annual supply deficit in 2026, estimated at 46.3 million ounces.

Founded by former Optiver and IMC traders, Theo already offers yield-bearing tokenized gold and U.S. Treasury products. Silver leases will also expand the assets supporting thUSD, Theo’s yield-bearing stablecoin.