Quick take:
- The Ethereum-based protocol will initially support the wBTC and Coinabase’s cbBTC-wrapped Bitcoin products.
- Midas will collaborate with institutional asset managers and lenders to generate mBTC yield.
- The announcement comes barely two weeks after Midas received EU regulation to offer tokenised assets to retail investors.
Midas, a crypto platform for real-world asset tokenisation has launched the mBTC yield-bearing token, which will pay out yield to holders in Bitcoin-dominated assets rather than fiat.
According to the announcement on Thursday, the platform will collaborate with institutional asset managers and lenders to generate a yield of 4% for investors.
The Ethereum-based protocol will initially support the wBTC, the biggest wrapped Bitcoin product and Coinbase’s cbBTC.
The company said its new mBTC product will be “open and permissionless” allowing integration with EVM-based DeFi products. The token will initially support yield farming on the decentralised lending protocol Morpho, before adding more DeFi products.
Commenting on the announcement, the Midas team said in a statement: “This launch follows the broader trend of increasing Bitcoin utility in DeFi, as Midas seeks to expand access to institutional-quality products that empower crypto users.”
Midas already offers two tokenisation products, the mTBILL and mBASIS tokens, which are not available in the U.S., and the mBTC will also only be offered to non-residents of the U.S.
Midas said investor assets for the mBTC token will be held in a bankruptcy-remote Special Purpose Vehicle, with a third-party regulated administrator providing performance updates.
In March, Midas raised $8.75 million in a funding round co-led by BlockTower Capital, Framework Ventures and HV Capital, and with participation from Coinbase Ventures, GSR, Hack VC, Ledger, FJ Labs, Lattice Capital, and Theia Ventures.
Earlier this month, the company received approval to expand its tokenised U.S. Treasury bills and yield-bearing trade products to retail investors in Liechtenstein, allowing it to offer the products to non-accredited investors in the EU economic zone.
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