Theo Launches thSLVR Token Backed by $40 Million in Silver Leases
New yield-bearing silver token goes live
Theonchain finance platform Theo has launched a new digital product called thSLVR. The token is backed by more than $40 million in active leases of physical silver. According to the New York-based company, the launch expands its business from just gold to include silver, and will also support its thUSD stablecoin, which is a digital token designed to maintain a fixed value.
With this product, investors can keep their exposure to the silver market while also earning income. This income comes from leasing the underlying metal to large institutional borrowers.
Key numbers and facts
- The token launched with over $40 million in committed leases.
- thSLVR is initially available to institutions and whitelisted investors in a beta phase, with broader access planned later.
- Tokenized commodities now represent about $4.9 billion in distributed value across 130 products.
- The number of people holding commodity tokens rose by 13% in the last month to nearly 339,000.
What Theo says
Theo stated that the silver backing the tokens will be leased to established institutional counterparties under standard market terms. The credit risk is supported by a guarantee from the company's parent. The firm noted that the silver market is projected to see a sixth consecutive annual supply deficit in 2026, with a shortfall estimated at 46.3 million ounces. Theo's chief investment officer, Iggy Ioppe, commented on this, stating that in such conditions, the lease rate is the real signal rather than the spot price.
Why this matters for the silver market
Silver prices have been highly volatile this year, reaching a record $121.79 per ounce in January before falling 41% in three days. The metal's price was recently in the mid-$60s, about half its peak. Theo highlights that most silver held in London vaults is locked in physical investment products, leaving only about 136 million ounces available for trading. This scarcity can cause lease rates to spike, which this new product passes directly to token holders.
How this product works
In this setup, borrowers like refiners and manufacturers take loans of silver to meet production needs. They pay a fee and later return an equivalent amount of metal. Traditionally, this income went to banks or dealers. With thSLVR, that income goes to the investors who hold the token. While tokenized gold is a large market, tokenized silver is much smaller. Existing silver tokens typically give users a cut of platform trading fees instead of income from lending the actual metal.