Two Prime introduces a Bitcoin lending vault targeting institutional investors.
Two Prime, a digital asset financial services firm, has launched a Bitcoin lending vault on the Pareto platform, aiming to offer an annual yield of between 1.5% to 2%. This initiative is designed to connect institutional borrowers with Bitcoin holders looking for income.
The vault, known as the Axiom WBTC Yield Vault, accepts wrapped Bitcoin (WBTC), a token representing Bitcoin that can be utilized across various blockchain networks. To participate, investors must deposit a minimum of 5 WBTC, which is approximately $400,000.
In a bid to mitigate initial losses, Two Prime is committing about $10 million of its own capital. The firm is targeting public corporations, credit-rated entities, and financial institutions as potential borrowers. Asset custody for the vault will be managed by ICE Digital Trust and Copper Technologies, ensuring secure handling of funds.
