Theo has launched thSLVR, a tokenized silver product backed by over $40 million in leases, enabling investors to earn income while holding silver.
The finance platform Theo has introduced a new tokenized silver offering, named thSLVR, which is underpinned by over $40 million in active leases.
Investing in Silver with Income Potential
thSLVR allows investors to gain exposure to silver while also earning income through leasing arrangements with institutional clients. Traditionally, refiners, mints, and industrial users borrow silver to meet their production needs, paying leasing fees and returning equivalent amounts of silver without the risk of price fluctuations. Historically, the income from these leases has primarily benefited bullion banks and dealers rather than individual investors holding silver through exchange-traded funds (ETFs) or other channels.
This year, silver prices have experienced significant volatility, peaking at $121.79 per ounce in January before a swift decline of 41% within just three days. By July, the metal had dropped to around $54.74 and has struggled to regain its value, currently trading in the mid-$60s, less than half of its January peak.
Leasing Income via Blockchain
Theo has indicated that the silver linked to thSLVR will be leased to reputable institutional parties under standard market terms, with a parent-company guarantee to mitigate credit risk. Token holders will not only benefit from price movements in silver but will also receive leasing income.
Launching with over $40 million in committed leases, thSLVR will initially be in beta for select institutions and investors, with plans for broader access in the future.
Expanding Tokenized Commodities Market
The market for tokenized real-world assets has rapidly evolved, now encompassing equities, funds, and commodities, with tokenized commodities valued at approximately $4.9 billion across 130 products. Gold-backed tokens from Tether and Paxos are currently leading the sector. The number of commodity token holders increased by 13% in the past month, approaching 339,000, according to RWA.xyz.
Lease rates for silver can rise sharply during periods of low physical availability. Presently, around 83% of silver stored in London vaults is committed to investment products, leaving about 136 million ounces available for trading and leasing. In October 2025, the one-month silver lease rate in London spiked to approximately 39%, far exceeding the historical average of below 1%. Although rates have since stabilized, forecasts indicate a sixth consecutive annual supply deficit in 2026, projected at 46.3 million ounces.
“Silver is approaching its sixth consecutive year of supply deficit, and the available lendable silver in London is nearing record lows,” stated Iggy Ioppe, chief investment officer of Theo. He emphasized that in this context, lease rates are a more accurate indicator than spot prices, which have been volatile. The introduction of thSLVR aims to bring the dynamics of silver lending onto the blockchain, highlighting the income potential as market conditions tighten.
Founded by former traders from Optiver and IMC, Theo also offers yield-bearing tokenized gold and U.S. Treasury products. The addition of silver leases is expected to enhance the asset base supporting thUSD, its yield-bearing stablecoin, which employs a hedged metals-lending strategy to generate returns independent of commodity price trends.
