Theo Raises $100 Million for Gold-Backed Stablecoin Launch

Theo, a tokenization platform, has announced the successful raising of $100 million to launch a gold-backed stablecoin, thUSD. According to ChainCatcher, thUSD is pegged to the U.S. dollar and backed by Theo's gold token, thGOLD, which was introduced in January. thGOLD is supported through secured lending agreements between Theo and gold retailers, such as Singapore's Mustafa Gold, and it can also generate returns. thUSD will derive its income from two sources: the returns from the underlying assets of thGOLD and the price differential gains from shorting gold futures contracts. Theo's Chief Investment Officer, Iggy Ioppe, stated that under favorable market conditions, this mechanism is expected to achieve an annualized return of approximately 10%.