Tokenization protocol Midas launches yield-bearing token that pays out returns in bitcoin-denominated assets
2024-10-24

Tokenization protocol Midas announced on Thursday that it is launching a wrapped bitcoin product, mBTC, which will pay out yields of 4% paid in bitcoin-denominated assets rather than fiat. The token is a way to earn returns on users' bitcoin holdings. 
The Ethereum-based protocol will initially support the largest wrapped bitcoin asset, wBTC, as well as Coinbase’s new token cbBTC. The yield will be generated “through collaboration with institutional asset managers and lenders,” a Thursday blog post stated. 
Midas made history in the European Union earlier this month when it launched the first regulated tokenized products available to non-accredited investors. 
Its new mBTC protocol will similarly be “open and permissionless,” making it fully compatible with the wider EVM-based DeFi sector. At launch, users can yield farm on the decentralized lending protocol Morpho, with more integrations coming soon.
“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,” the team wrote in a statement. 
Like its existing mTBILL and mBASIS tokens, mBTC will not be available in the U.S. or sanctioned countries. The assets will be held in a bankruptcy-remote Special Purpose Vehicle while a third-party regulated administrator will provide performance updates.
Disclosure: The Block's Director of Special Projects, Frank Chaparro, is an investor in Midas.
Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.
© 2024 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.