The new product offers exposure to spot gold while generating yield.
Theo, a real-world asset (RWA) tokenization platform, has launched thGOLD, a tokenized gold product.
The token not only provides exposure to spot gold prices but also generates yield, according to a press release viewed by The Defiant. This differs from most other tokenized gold products, which typically only track spot prices. Theo said thGOLD is expected to be available across decentralized finance (DeFi) venues, including Hyperliquid, Uniswap, Morpho, and Pendle.
The launch comes as gold prices reached a new all-time high this week, rising above $5,100 per ounce amid strong demand for safe-haven assets. Last week, tokenized gold surpassed $4 billion in market value, The Defiant reported. Tether Gold (XAUT) and Paxos Gold (PAXG) accounted for most of this growth, according to DeFiLlama data.
It also comes as investors continue to look for ways to make idle assets like gold more productive within the DeFi landscape, especially as interest in tokenized real-world assets (RWAs) continues to grow.
Currently, the tokenized RWA sector boasts over $23 billion in Distributed Asset Value, up 12% over the past month, per RWAxyz. Meanwhile, the tokenized commodities market stands at $5.14 billion, up more than 28% over the past 30 days
thGOLD is built on the MG999 On-Chain Gold Fund, a tokenized private credit fund managed by FundBridge Capital, the release explained. The fund generates yield by lending to gold retailers, starting with Singapore-based Mustafa Gold. Libeara, a tokenization platform incubated by Standard Chartered Ventures, provides the underlying infrastructure.
Theo said the structure could later be expanded to incorporate additional sources of yield, including bank gold lending rates.
“Most tokenized gold today is just a wrapper. You’re paying fees to hold an asset that does nothing,” said Ari Pingle, co-founder of Theo. “We built thGOLD to actually work in DeFi: it earns yield, it trades on real venues, and you can use it as collateral. That’s what tokenization should deliver.”
The release notes that gold rose 64% in 2025, its strongest annual performance in decades, driven by central bank purchases and increased demand for safe-haven assets amid geopolitical uncertainty.
The launch follows Theo’s earlier tokenized Treasury product, thBILL, which reached more than $200 million in total value locked (TVL) within four months of launch. thGOLD will initially be available through a capped rollout as the underlying fund scales.
