Blockchain finance platform Theo launches tokenized silver backed by $40 million in active leases
The onchain finance platform said thSLVR allows investors to retain exposure to silver while earning income from lending the metal to institutional borrowers.
Onchain finance platform Theo introduced a yield-bearing tokenized silver product backed by more than $40 million of active leases, expanding its commodities-financing business beyond gold.
The token, called thSLVR, gives holders exposure to silver while passing on income generated by lending the underlying metal to institutional borrowers, the New York-based company said in a Wednesday announcement.
Refiners, mints and industrial manufacturers routinely borrow silver to meet production needs without assuming price risk. Those borrowers pay a lease fee and later return an equivalent amount of metal. The income has traditionally accrued to bullion banks and dealers rather than investors holding silver through exchange-traded funds (ETFs) or other products.
Tokenized silver remains a considerably smaller market than tokenized gold, which has grown to several billion dollars across multiple products. Existing silver tokens that offer returns typically distribute a portion of platform trading fees rather than income earned by lending the underlying metal.