Theo launches yield-bearing tokenized gold built to ‘work in DeFi’

FinTech firm Theo has officially introduced its new yield-bearing tokenized gold product, explicitly engineered for deep integration within the decentralized finance (DeFi) ecosystem. This tokenized asset, backed 1:1 by audited physical gold reserves, distinguishes itself by offering holders an inherent yield, moving beyond the passive store-of-value proposition typical of first-generation gold tokens.

The yield mechanism is structured to reward participants while maintaining the security and stability associated with the underlying physical asset. The core innovation lies in the token’s architecture, which is designed for maximum composability across DeFi primitives. Theo asserts that the token will function seamlessly across existing infrastructure, including automated market makers (AMMs), collateralized lending platforms, and sophisticated yield aggregation strategies.

This focus on composability allows users to generate active returns on their gold holdings without sacrificing liquidity or requiring burdensome locking mechanisms. By creating an asset that combines the historical stability of gold with the earning potential and accessibility of decentralized finance, Theo aims to set a new standard for Real-World Asset (RWA) tokenization, accelerating the convergence of traditional finance security and blockchain efficiency.

Source: Theo launches yield-bearing tokenized gold built to ‘work in DeFi’