Theo Launches thUSD Stablecoin with $100M Gold Futures Trading Facility

Tokenization platform Theo has launched thUSD, a dollar-pegged stablecoin that generates yield through a gold futures trading strategy. The token is supported by a $100 million structured facility called the Genesis Vault, which closed at its cap within 24 hours of opening.

The capital in the facility goes toward buying tokenized gold on a platform like Hyperliquid, while Theo shorts gold futures on the CME to hedge against price swings. This combination, known as a cash-and-carry trade, captures the spread between spot and futures prices without carrying full exposure to gold's market value.

Theo recorded an average annual return of 8.27% in 2025 using this approach, with Co-founder Ari Pingle stating that the firm targets returns between 5% and 12%, depending on gold market conditions. Chief Investment Officer Iggy Ioppe said the firm also plans to short gold futures on crypto-native platforms, including decentralized exchange Hyperliquid, which he estimates could push annualized yields toward 10%.

The stablecoin maintains its dollar peg through reserves of thGOLD, a token Theo launched in January, which is backed by secured lending agreements with gold retailers. Ioppe said retailers like Mustafa Gold benefit from the setup because it allows them to hedge gold price exposure while continuing normal production.