Two Prime Launches Bitcoin Vault, Targets 1.5%-2% Annual Yield
Summary
- Two Prime unveiled Pareto, an on-chain private credit platform, and its Bitcoin yield vault, the Axiom WBTC Yield Vault.
- The product is structured to take deposits of WBTC and lend them to institutional borrowers, giving Bitcoin investors a source of returns beyond price gains and providing institutions with Bitcoin liquidity.
- The minimum deposit is $250,000 worth of WBTC, the initial capacity is 1,350 Bitcoin, the target is an annual return of 1.5% to 2%, and the firm plans to absorb initial losses with about $10 million of its own capital.
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Crypto financial services firm Two Prime has launched a Bitcoin-based lending product.
CoinDesk reported on September 16 that Two Prime unveiled the Axiom WBTC Yield Vault, a Bitcoin yield vault built on Pareto, an on-chain private credit platform.
The product takes deposits of Wrapped Bitcoin, or WBTC, a tokenized form of Bitcoin designed for use on other blockchain networks, and lends them to institutional borrowers. It is designed to give Bitcoin investors a source of returns beyond price appreciation while providing institutions with access to Bitcoin liquidity.
The minimum deposit is $250,000 worth of WBTC. Initial capacity is 1,350 Bitcoin. The vault is targeting annual returns of 1.5% to 2%, depending on market conditions.
Two Prime has committed about $10 million of its own capital to absorb initial losses. Borrowers are expected to include listed companies and businesses with credit ratings.
The launch appears to mark Two Prime's push into on-chain finance from its existing business of institutional Bitcoin-backed lending.
