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Theo Raises $100M to Launch Gold-Backed Yield-Generating Stablecoin thUSD

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Token launch news: Theo has secured $100 million to launch thUSD, a gold-backed stablecoin pegged to the US dollar. The stablecoin’s reserves include thGOLD, a gold token backed by a secured lending agreement with gold retailers such as Singapore’s Mustafa Gold. thUSD will generate yield from returns on thGOLD’s assets and gold futures spreads. Theo’s CIO said the mechanism could deliver approximately 10% annual returns under favorable conditions. On-chain data shows rising interest in yield-generating stablecoins.

ChainCatcher reports that the tokenization platform Theo has announced raising $100 million to launch thUSD, a gold-backed stablecoin. thUSD is pegged to the U.S. dollar and is backed by thGOLD, Theo’s gold token launched in January this year. thGOLD is collateralized through secured lending agreements between Theo and gold retailers such as Singapore’s Mustafa Gold, and it also generates yield. thUSD will earn yield from two sources: first, from the underlying assets of thGOLD; second, from spread income generated by shorting gold futures contracts. Theo’s Chief Investment Officer, Iggy Ioppe, stated that under favorable market conditions, this mechanism is expected to deliver an annualized yield of approximately 10%.

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