PAX Gold Tokenization Taps Gold Futures for Yield-Bearing Stablecoin Amid Market Shift

Tokenization platform Theo has raised $100 million to introduce thUSD, a stablecoin backed by thGOLD, which is secured by lending agreements with gold retailers. According to reports, the stablecoin aims to generate yield from two sources: thGOLD's yield and a cash-and-carry trade strategy involving gold futures.

Tokenized real-world assets (RWAs), such as government securities, private credit, real estate, and commodities, have surpassed $26 billion in on-chain value by early 2026.

Tokenization platform Theo has introduced thUSD, a stablecoin backed by thGOLD, which is secured by lending agreements with gold retailers. thUSD is designed to generate yield through a cash-and-carry trade strategy involving gold futures. This approach, explained by Theo's CIO, could potentially yield up to 10% annually under favorable conditions. The stablecoin holds a long position in thGOLD and a short position in gold futures through venues like the CME, capturing the spread between spot and futures prices. By early 2026, tokenized real-world assets (RWAs) have surpassed $26 billion in on-chain value across government securities, private credit, real estate, and commodities.

The tokenization of real-world assets is gaining momentum, particularly in markets like government securities and commodities. For example, PAX Gold and XAUT are among the most actively traded tokens in the commodities category, representing one troy ounce of physical gold held in an audited vault. The growth of RWAs is driven by institutional investors seeking faster settlement, fractional ownership, and enhanced liquidity.

What Is the Cash-and-Carry Trade Strategy and How Does It Apply to thUSD?

The cash-and-carry trade strategy involves simultaneously holding a long position in a physical asset and a short position in a futures contract. In the case of thUSD, the stablecoin holds a long position in thGOLD and a short position in gold futures. This strategy allows the platform to profit from the spread between spot and futures prices. The yield generated by thUSD is expected to come from both thGOLD's yield and the cash-and-carry trade strategy. Under favorable market conditions, the strategy could yield up to 10% annually.

Why Are Tokenized Real-World Assets Gaining Institutional Interest in 2026?

Tokenized real-world assets are gaining traction in 2026 due to several factors, including regulatory clarity, settlement efficiency, and DeFi integration. Regulatory frameworks are maturing, with Hong Kong, Singapore, and the European Union providing guidance and licensing for digital asset services. Settlement efficiency is a measurable advantage of tokenized assets, which can settle on-chain in minutes or even seconds, reducing counterparty exposure and freeing up collateral more quickly. DeFi integration is also expanding capital efficiency, allowing tokenized Treasuries to be used as collateral in decentralized lending protocols.

What Are the Key Drivers Behind the Growth of Tokenized Real-World Assets in the Commodities Sector?

Tokenized commodities, such as gold, have been a significant driver of growth in the RWA market. Gold tokens like PAXG and XAUT represent one troy ounce of physical gold held in an audited vault and are among the most actively traded examples in this category. The appeal of tokenized commodities lies in their ability to provide transparency, fractional ownership, and faster settlement. Tokenization also allows for the creation of yield-bearing instruments, as seen in the case of thUSD, which combines gold-backed assets with a cash-and-carry strategy to generate returns. Institutional demand is further supported by platforms like OSL, which provide regulated infrastructure, custody, and trading tools for tokenized assets.