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Theo has launched a new yield-bearing tokenised gold product designed to generate onchain returns, as tokenised bullion reaches a record market capitalisation.
The product, called thGOLD, offers exposure to spot gold prices while earning yield through secured lending backed by physical gold inventories, addressing a long-standing gap in the market.
“We built thGOLD to actually work in DeFi — it earns yield, trades on real venues and can be used as collateral,”
Said Theo co-founder TK Kwon.
Theo developed thGOLD in partnership with Libeara, a tokenisation firm backed by Standard Chartered’s venture arm, and built it on FundBridge Capital’s MG999 On-Chain Gold Fund.
The fund lends against gold pledged by established retailers, beginning with Singapore-based Mustafa Gold, allowing it to collect interest while maintaining exposure to bullion prices.
Theo said thGOLD will be available across decentralised finance platforms including Hyperliquid, Uniswap, Morpho and Pendle, where it can trade and be posted as collateral.
The launch comes as most existing tokenised gold products, such as Tether XAUT and Paxos PAXG, continue to offer only passive price exposure despite gold prices hitting fresh all-time highs above $5,100.
At the time of reporting, Hyperliquid price was $30.81.