Theo Launches Tokenized Silver thSLVR Backed by $40M in Active Leases

Theo Expands Commodities Business With Yield-Bearing Silver Token

Onchain finance platform Theo has rolled out a yield-bearing tokenized silver product backed by more than $40 million in active leases. The New York-based company said the launch extends its commodities-financing business beyond gold.

The new token, called thSLVR, gives holders exposure to silver while passing on income earned by lending the underlying metal to institutional borrowers.

How the Lease Model Works

Refiners, mints and industrial manufacturers routinely borrow silver to meet production needs without taking on price risk. Those borrowers pay a lease fee and later return an equivalent amount of metal.

Historically, that income has accrued to bullion banks and dealers rather than to investors holding silver through exchange-traded funds (ETFs) or other products. Theo's product redirects that leasing income to token holders.

According to the firm, the silver backing thSLVR will be leased to established institutional counterparties under standard market terms, with credit exposure supported by a parent-company guarantee. Holders retain exposure to silver price movements while collecting the associated leasing income.

Silver's Turbulent Year

Silver has been exceptionally volatile in 2025. The metal surged to a record $121.79 an ounce in January before plunging 41% in three days. It 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 have been attributed to shifting rate expectations, speculative trading and uncertainty over industrial demand.

Market Structure and Lease Rates

Silver leasing rates can rise sharply when physical availability tightens. Around 83% of the silver held in London vaults is locked in physically backed investment products, leaving about 136 million ounces available for trading and leasing, according to data cited by Theo.

London's one-month silver lease rate briefly climbed to about 39% in October 2025, compared with a historical norm below 1%. Rates have since normalized, though the market is projected to record a sixth consecutive annual supply deficit in 2026, with the shortfall estimated at 46.3 million ounces.

"Silver is heading into a sixth straight year of supply deficit and the lendable pool in London is near a record low," said Iggy Ioppe, chief investment officer of Theo, in emailed comments. "In that setup the lease rate is the real signal, not the spot price, and it has been swinging hard."

Beta Launch and Broader Access

The product launches with more than $40 million of leases committed. Initially available in beta, thSLVR will be offered to institutions and whitelisted investors, with broader access planned later.

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.

Tokenized Commodities Growth

The tokenized real-world asset market has expanded rapidly beyond U.S. Treasuries and private credit into equities, funds and commodities. Tokenized commodities now represent about $4.9 billion in distributed value across 130 products, led by gold-backed tokens from Tether and Paxos.

The number of commodity-token holders rose 13% over the past month to almost 339,000, according to RWA.xyz.

Founded by former Optiver and IMC traders, Theo also offers yield-bearing tokenized gold and U.S. Treasury products. The silver leases will broaden the assets supporting thUSD, its yield-bearing stablecoin, which uses a hedged metals-lending strategy designed to generate returns without depending on the direction of commodity prices.

Coinasity's Take

Theo's thSLVR highlights a growing shift in tokenized commodities: from passive exposure to income-generating structures tied to real market activity. By routing silver lease fees onchain, the product taps a revenue stream long reserved for bullion banks and dealers.

With silver facing a projected sixth straight supply deficit and London's lendable pool near record lows, lease rates could remain a key signal for investors. The launch also strengthens Theo's broader push into metals-backed yield products, including its thUSD stablecoin. If adoption grows, tokenized silver could follow gold's path from niche product to a more established segment of the RWA market.