Silver has traditionally occupied an unusual position in financial markets. It is both a precious metal and a critical industrial commodity, but unlike bonds, dividend-paying stocks, or many credit products, simply holding physical silver generally produces no income. That could be changing.
A new tokenized product from financial technology company Theo is attempting to turn physical silver into a yield-generating asset by combining ownership exposure to the metal with income generated through silver leasing. The development comes at a time when physical silver liquidity remains unusually tight. Theo has launched thSLVR, a tokenized silver product designed to provide exposure to physical silver while directing income from leases of that silver back toward holders. According to a Kitco's report, the product launched with more than $40+ million of silver leases already generating income. The important distinction is that the proposed yield comes from leasing physical silver rather than from trading fees charged by the platform.
The concept addresses a longstanding characteristic of precious metals: an investor can own an asset that appreciates substantially, but the metal itself does not generate cash flow. Industrial users like refiners and manufacturers regularly require access to physical silver. A holder who makes metal available to those users can receive a lease payment in return. Theo's approach essentially attempts to connect those two sides of the market through blockchain based ownership.
I love when my two world come together. Crypto has been fairly quite lately so I like seeing this type of news come across my feed.
The whole point of precious metals is to have a backup if everything fails. I would never buy virtual silver, there are enough other instruments that create a yield, if one needs some. Also with silver doomed to go up over the long term, even holding physical silver is better than any tokenized stuff where you carry third party risks.
When measured in U.S. Stable Coinage, the Melt Value of Silver will be $9 per Ounce… Golds Melt Value will be $90 per Ounce…
I don´t understand what you mean, currently the melt value of silver is >60$/oz
Forget everything you were taught about Fiat Monetary Systems and read a few of my posts…
I don’t like it… What happens when all your “Leased” Silver is used up…???
This sounds pretty cool. I'll have to check it out. Thanks for sharing it!
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We will see in the coming time that people will not buy physical things and are moving towards online things. Now we can trade silver on exchanges too
Sounds cool, but i think i will stay on my https://kms.kinesis.money/signup/KM00106690 hehe :P trading fees dont bring leasing risk
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How do you lease silver? I feel like once it is consumed it loses a lot of its value.
Over time, those who do not update themselves will continue to live in much more trouble