coindesk.com
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.
The product launches with more than $40 million of leases committed, the firm said. 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
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, while the number of commodity-token holders rose 13% over the past month to almost 339,000, according to RWA.xyz
Silver leasing rates can rise sharply during periods of limited physical availability. 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.