Two Prime makes onchain finance push with $10 million-backed bitcoin yield vault
Two Prime has launched a new bitcoin yield vault that allows institutional investors to earn returns on their wrapped bitcoin holdings. The firm has committed $10 million of its own capital to provide a buffer against initial losses for the vault, which is supported by Pareto's infrastructure.
Why it matters
This initiative represents a growing trend of institutional-grade financial products being built on blockchain rails to bridge traditional capital with crypto-asset liquidity.
The Axiom WBTC Yield Vault accepts wrapped bitcoin (WBTC), a token representing bitcoin that can be used on other blockchain networks.
The vault requires a minimum deposit of $250,000 in WBTC and has an initial capacity of 1,350 BTC ($104 million). Returns are subject to market conditions and are not guaranteed.
Two Prime is expanding its lending business into onchain finance, connecting bitcoin holders seeking income with institutions seeking access to bitcoin funding.
The firm, which provides institutional investment strategies and bitcoin-backed lending, has committed roughly $10 million of its own capital to absorb initial losses. The strategy targets borrowers including public companies, credit-rated entities and diversified financial institutions.
Pareto supplies the blockchain-based private credit infrastructure underpinning the vault. ICE Digital Trust and Copper Technologies will hold its assets in custody.
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