Theo launches thGOLD, a yield-bearing tokenized gold product, combining spot gold exposure with secured lending returns for investors.
Theo has launched thGOLD, a yield-bearing tokenized gold product, through a partnership with Libeara. Notably, Libeara has the backing of the venture arm of Standard Chartered. The launch brings yield generation to the onchain bullion market. As a result, the product meets a long-time limitation in digital gold investments.
Theo Introduces thGOLD to Add Yield to Onchain Gold Markets
Traditionally, gold exposure was in terms of cost of custody and no income generation to holders. Physical storage is normally priced between 0.5% and 1% per year. Meanwhile, gold ETFs lowered the amount of friction but still take fees between 0.1% and 0.5%. Therefore, gold has remained for the most part a cost center for investors.
1/ Introducing thGOLD, the first ever yield-bearing gold.
With thGOLD, your gold works for you.
Earn ~2% yield with full gold exposure. pic.twitter.com/5VNzysDhtT
— Theo (@Theo_Network) January 27, 2026
However, thGOLD is hoping to change that long standing model. The product provides exposure to spot gold prices with yield. According to product details, thGOLD is aimed to show approximately 2% annual yield. Importantly this is achieved in a way that allows the yield to be earned without reducing gold price exposure.
The structure is built on the FundBridge Capital’s MG999 On-Chain Gold Fund. The fund offers secured loans that are backed by physical gold inventories. Established gold retailers commit to bullion as collateral. In return, they get liquidity while the fund earns interest income.
At first, Singapore-based Mustafa Gold is the first borrower. Mustafa Gold is one of the largest and longest-running gold retailers in Singapore. Therefore, the partnership stresses borrower credibility and operation stability. This approach is used to mitigate counterparty and credit risks.
Furthermore, the gold backing thGOLD does not sit back and do nothing. Instead, it is on loan in the form of gold-denominated loans to retailers. Borrowers use the inventory for business operations. Later, they give the same amount of gold back without the interest and maintain price exposure.
Minting and redemption for thGOLD is currently open for early access. This enables eligible participants to get in/out of positions efficiently. Due to this, the access to liquidity is better than in the traditional ownership models of physical gold.
Moreover, thGOLD is tokenized on the infrastructure of Libeara. Libeara specializes in institutional-grade tokenization solutions. Its support by the venture arm of Standard Chartered lends it additional institutional credibility. Consequently, the product appeals to professional as well as onchain-native investors.
Yield-Bearing Gold Reflects Broader Tokenization Trends
The launch comes on the back of the accelerating tokenization of real-world assets globally. According to industry data, tokenized real-world assets were worth more than $8 billion in 2025. Gold is still a major part of that growth. However, yield-bearing structures have been few in number.
By contrast, thGOLD gives bullion a productive use. Instead of paying investors to store the money, it earns an income. This approach is in line with broader trends of decentralised finance. Increasingly, investors are looking for assets that have a combination of stability and yield.
However, risks are always relevant. Gold-backed lending is reliant on the reliability of borrowers and their collateral management. Market volatility could also impact liquidity during the stress periods. However, secured lending and established retailers wish to minimize the downside exposure.
Overall, Theo defines thGOLD as a structural change in gold investing. The product converts gold from being a passive store of value into an income generating asset. As a result, it could have an impact on future onchain bullion designs.
In conclusion, the concept of thGOLD represents an increasing convergence of the traditional commodities and blockchain finance. By combining yield, tokenization, and institutional partnerships, Theo increases the role of gold in the digital markets. This development emphasizes the ability of onchain products to continue to challenge the traditional models of assets.