Theo Launches thSLVR Token Backed by $40M Silver Leases

Blockchain finance platform Theo launched thSLVR, a yield-bearing tokenized silver product, on Wednesday. The New York-based company announced that the token is backed by more than $40 million in active silver leases.

Theo said thSLVR allows investors to maintain exposure to the metal while earning income. The firm explained that institutional borrowers pay lease fees to access physical silver for production needs. Those fees are passed directly to token holders. Previously, such leasing income typically accrued to bullion banks and dealers.

Silver prices have experienced significant volatility this year. According to CoinDesk, the metal surged to a record $121.79 per ounce in January before falling 41% in three days. Prices dropped to $54.74 in July and recently traded around the mid-$60s.

Iggy Ioppe, chief investment officer of Theo, noted the tight physical market conditions. “Silver is heading into a sixth straight year of supply deficit and the lendable pool in London is near a record low,” Ioppe said in emailed comments.

Data cited by Theo indicates that approximately 83% of silver in London vaults is held within physically backed investment products. This leaves about 136 million ounces available for trading. For 2026, the silver market is projected to see a sixth consecutive annual supply deficit, where the shortfall is estimated at 46.3 million ounces.

thSLVR is initially available in beta to institutions and whitelisted investors. Broader access is planned later. Theo’s commodities-financing business now extends past gold through the product, which also supports its thUSD stablecoin.