Theo Launches Tokenized Silver Product Based on Lease Commitments, Aiming to Diversify Returns
Summary
- On-chain finance platform Theo said it has launched a tokenized silver product that offers returns based on silver lease commitments.
- Theo launched 'thSLVR,' a yield-bearing token linked to the price of silver, and said it plans to distribute lease income to token holders.
- thSLVR will be offered as a beta service with more than $40 million in lease commitments secured, and Theo said it plans to gradually expand access.
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On-chain finance platform Theo has launched a tokenized silver product that offers returns based on silver lease commitments.
CoinDesk reported on September 16 that Theo introduced thSLVR, a yield-bearing token linked to the price of silver. The product is designed to give investors exposure to moves in silver prices while also passing along lease income generated by lending the underlying metal to institutions.
Institutions such as refiners and mints typically borrow silver for a set period rather than buy it outright for production. Purchasing silver directly leaves them exposed to price fluctuations.
Borrowers pay a lease fee and return the same amount of silver at maturity. Those returns have traditionally gone mainly to precious-metals finance firms or dealers, but Theo's plan is to distribute them to token holders.
thSLVR is launching with more than $40 million in lease commitments secured. It will initially be offered in beta only to institutions and pre-approved investors. Theo plans to gradually expand access in the future.
“The silver market has faced supply deficits for six straight years, and lendable inventory in London is nearing a record low,” Theo Chief Investment Officer Igor Ioffe said. “As the market tightens, lease rates emerge as a more important signal than spot prices, and the value of lease income increases.”
