Theo Closes $100 Million Genesis Vault to Launch Gold-Hedged, Yield-Bearing Stablecoin thUSD

Theo says the structure falls outside new U.S. GENIUS Act yield limits by sourcing returns from cash-and-carry trades.

Overview

The Genesis Vault reached its $100 million cap within 24 hours, with deposited capital dedicated to backing thUSD rather than funding Theo’s operations.
thUSD targets a dollar peg by holding tokenized gold (thGOLD) while shorting gold futures on venues including CME, Binance, and Hyperliquid to capture financing and spot–futures spreads.
Theo reports its cash-and-carry approach averaged 8.27% in 2025, with a stated target range of 5% to 12% and potential near 10% under favorable conditions.
Underlying gold exposure is supported by secured lending arrangements with retailers such as Singapore’s Mustafa Gold, using pledged inventory to generate additional yield.
Initial participation requires investor registration and whitelisting, with on-chain compatibility planned for DeFi protocols like Morpho; backers include Hack VC, Anthos Capital, and angels linked to Jane Street, Optiver, and JPMorgan.