The tweet was deleted by the author.
But we saved everything 🙂.
Onchain finance platform Theo has launched thSLVR, a tokenized silver product backed by more than $40 million in active metal leases. The product allows investors to retain exposure to silver prices while earning income from lending the metal to institutional borrowers.
The New York-based company is expanding its commodities financing business after launching a similar product backed by gold. Initially, thSLVR will be available in beta to institutional and whitelisted investors.
View post on X Loading...
Manufacturers, refiners and mints routinely lease silver for production needs without taking on price risk. They pay a fee for using the metal and later return an equivalent amount of silver.
The silver backing thSLVR will be leased to institutional counterparties under standard market terms. Credit risk is additionally supported by a guarantee from the borrower's parent company.
As a result, token holders retain exposure to movements in the silver price while also earning income from leasing the metal. At launch, Theo had secured commitments for more than $40 million in such leases.
The company notes that this type of income typically accrues to banks and precious metals dealers. Investors holding silver through exchange-traded funds and other traditional instruments generally do not receive it.
Silver remains an extremely volatile asset. Its price reached a record $121.79 an ounce in January before falling 41% in just three days and dropping as low as $54.74 in July. More recently, the metal has traded around the mid-$60s.
According to RWA.xyz, the total distributed value of tokenized commodities stands at around $4.9 billion across 130 products. Gold dominates the market, including products from Tether and Paxos, while the number of commodity token holders increased 13% over the past month to nearly 339,000.
Theo aims to use the limited supply of silver available for leasing as a source of additional yield.
According to data cited by the company, around 83% of the metal held in London vaults is locked in physically backed investment products, leaving approximately 136 million ounces available for trading and leasing. The market could also face a sixth consecutive annual supply deficit in 2026, estimated at around 46.3 million ounces.
Meanwhile, Coinbase has launched Coinbase Tokenize, a regulated service for bringing real-world assets onto the Base blockchain. The platform is designed to tokenize stocks and other securities with regulated custody and direct economic exposure for institutional participants.
Earlier, we reported that European financial and tokenization groups urged lawmakers to drop a proposed €100 billion cap on tokenized financial instruments. As an alternative, industry participants proposed raising the limit to at least €500 billion.