Theo closes $100M facility backing gold-linked yield stablecoin

A new gold-linked yield stablecoin aims to tap commodity markets for returns as institutions explore alternatives to Treasury-backed tokens.

Tokenization platform Theo has received $100 million for a structured investment facility backing its yield-bearing stablecoin, thUSD, underscoring growing institutional appetite for digital dollars tied to alternative yield sources beyond US Treasurys.

The company uses the deposited funds to buy tokenized gold while simultaneously shorting gold futures on the CME to hedge price movements. The strategy is designed to reduce exposure to gold price volatility while generating yield from gold financing and futures market spreads.

Theo realized an average annual return of 8.27% in 2025 using that strategy and targets returns of 5% to 12%, depending on market conditions, Pingle said.

While gold-backed stablecoins remain relatively nascent, several blockchain projects have issued tokens backed by physical bullion, including Tether Gold and Paxos Gold. Unlike dollar-pegged stablecoins, these tokens track the market price of gold, with each token typically representing one troy ounce of vaulted bullion.

Investors in Theo include Hack VC and Anthos Capital, as well as angel investors from Jane Street, Optiver and JPMorgan, according to a company announcement.

The tension over “yield” under US GENIUS Act

The launch comes as yield-bearing stablecoins have gained traction following recent regulatory developments in the United States.

The GENIUS Act restricts payment stablecoin issuers from distributing yield on reserve assets, such as Treasury bills. Theo says thUSD differs because returns are generated through the underlying trading and asset structure rather than issuer-paid interest.