New York-based blockchain finance platform Theo has launched a tokenized silver product called thSLVR. The company disclosed that this product is backed by silver leasing transactions worth over $40 million, allowing holders to retain an exposure to silver prices while also receiving the leasing fees paid by institutions for borrowing silver.

The product is centered around silver leasing income.

Theo indicates that refineries, mints, and industrial manufacturers would borrow silver for production purposes and return an equal amount of metal upon maturity. The debit side typically pays a rental fee, which in the past was mainly generated by gold and silver dealers and related financial institutions; holders of ordinary silver investment products rarely shared in this income directly.

According to Theo, the silver corresponding to thSLVR will be leased to institutional counterparties under standard market terms, with the related credit risk guaranteed by the parent company. The product is currently being launched in a test phase, targeting institutions and whitelist investors, with the scope of availability to be expanded later on.

The tokenized silver market is still smaller than that of gold.

Currently, the market scale of tokenized commodities is still dominated by gold. According to RWA.xyz data, the total value of tokenized commodities is approximately $4.9 billion, covering around 130 products, among which gold tokens account for the majority share. In the past month, the number of commodity token holders has increased by about 13%, reaching nearly 339,000.

In contrast, the tokenized silver market is significantly smaller. Theo believes that although some existing silver tokens do offer returns, what is typically distributed is the platform's transaction fees, rather than the rental income generated from lending the silver itself.

Tight silver supply supports leasing demand

Theo Cited data indicates that approximately 83% of the silver held in London vaults has been locked up by physical-backed investment products, leaving about 136 million ounces of silver available for trading and leasing. The company stated that during times of tight spot supply, the silver leasing rate may rise rapidly.

Theo also mentioned that the one-month silver leasing rate in London briefly rose to around 39% in October 2025, while the historical norm is usually below 1%. Although the rate has since fallen, the market expects silver to experience a supply gap for the sixth consecutive year in 2026, with a gap of about 46.3 million ounces.

Theo Chief Investment Officer Iggy Ioppe stated that in a situation where supply remains tight, rental rates better reflect market conditions than spot prices. The company aims to move the earnings generated from lending silver onto the blockchain as a source of return for token holders.

Expand the underlying assets of thUSD.

Theo was founded by the previous Optiver and IMC traders. The company's current products also include yield-oriented tokenized gold and U.S. Treasury products. The company disclosed that this batch of silver leasing assets will also expand the underlying support scope of thUSD.

Theo introduces that thUSD is a yield-stabilized coin that adopts a hedged metal lending strategy, with the goal of generating income without relying on the one-way increase in commodity prices.