TechFlow News, March 17: According to Decrypt, tokenization platform Theo announced raising $100 million to launch thUSD, a gold-backed stablecoin. thUSD is pegged to the U.S. dollar, with its reserves composed of Theo’s gold token, thGOLD, launched in January this year. thGOLD is backed by secured lending agreements between Theo and gold retailers (e.g., Mustafa Gold in Singapore) and itself generates yield.
Regarding yield sources, thUSD will generate returns from two streams: first, yield derived from thGOLD’s underlying assets; second, spread-based gains from 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%.
