Theo Taps Gold Futures for Yield-Bearing Stablecoin Amid $100 Million Raise
Theo has raised $100 million to launch thUSD, a gold-backed stablecoin designed to maintain parity with the U.S. dollar using reserves of thGOLD—a yield-generating token backed by secured lending with gold retailers like Singapore’s Mustafa Gold. Unlike typical stablecoins backed by cash and Treasuries, thUSD’s value is tied to gold and yield comes from both the lending agreements of thGOLD and a cash-and-carry strategy: Theo holds long positions in thGOLD while shorting gold futures on platforms such as CME, Binance, and Hyperliquid, aiming to capture spread between spot and futures prices. The company estimates this strategy could yield 10% annually. Theo’s approach is to bring sophisticated Wall Street trading strategies to retail investors via tokenized, risk-off assets like T-bills and gold. thUSD is designed for compatibility with DeFi lending protocols, with access available globally after user registration. The tokenized gold market is currently dominated by Tether and Paxos, but Theo aims to serve increased demand for stable, on-chain investments amid prevailing crypto market cautiousness.
