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

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.

Silver has been exceptionally volatile this year, surging to a record $121.79 an ounce in January before plunging 41% in three days. The metal traded as low as $54.74 in July and has since struggled to sustain a recovery, recently changing hands around the mid-$60s, roughly half its January peak.

The price swings were attributed to shifting rate expectations, speculative trading and uncertainty over industrial demand.

Lease income onchain

Theo said the silver backing thSLVR will be leased to established institutional counterparties under standard market terms, with the credit exposure supported by a parent-company guarantee. Token holders retain exposure to movements in the silver price while receiving the associated leasing income.