Blockchain finance platform Theo launches tokenized silver backed by $40 million in active leases

Theo has introduced thSLVR, a token that combines exposure to silver prices with yield derived from leasing the underlying metal. The company said the product launches with over $40 million of silver leases already committed. That leased metal will be loaned to refiners, mints and industrial users under customary market terms, and the fees those borrowers pay will flow to thSLVR holders while the tokens continue to track silver price movements. The offering is being released initially in beta to institutional and whitelisted investors, with plans to widen distribution later. Theo said credit risk on the lease book will be backed by a parent-company guarantee. The firm already issues tokenized gold and U.S. Treasury products, and it expects the silver leases to help support its thUSD yield-bearing stablecoin, which relies on a hedged metals-lending approach to generate returns. Tokenized silver remains much smaller than tokenized gold, but the market for onchain real-world assets has been growing. RWA.xyz data cited by Theo put tokenized commodities at about $4.9 billion across roughly 130 products, and nearly 339,000 commodity-token holders. Existing silver tokens typically return platform trading fees, whereas Theo’s structure distributes actual leasing income from the physical metal. Theo highlighted strained physical availability as a rationale for the product: roughly 83% of silver stored in London is tied up in physically backed investment products, leaving about 136 million ounces available for trading and lending. London’s one-month silver lease rate spiked to near 39% in October 2025 from a historical norm below 1% during tight periods, and market projections cited by the firm point to a sixth consecutive annual supply deficit in 2026 with an estimated shortfall of 46.3 million ounces. Those conditions, Theo says, can make leasing income especially valuable when the lendable pool is constrained.