Two Prime makes onchain finance push with $10 million-backed bitcoin yield vault
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Two Prime, a digital asset financial services firm, launched a bitcoin lending vault on the Pareto platform targeting 1.5% to 2% annual yields by lending to institutional borrowers. The Axiom WBTC Yield Vault accepts wrapped bitcoin (WBTC) and requires a minimum deposit of 5 WBTC (approximately $400,000). Two Prime has committed about $10 million in first-loss capital, with custody services provided by ICE Digital Trust and Copper Technologies.
Why it matters
This development represents Two Prime’s expansion into onchain finance, bridging bitcoin holders seeking income with institutions needing bitcoin funding. According to the source, this expands institutional lending access via blockchain-based private credit infrastructure, although the article does not elaborate further on market or policy impact.
Key context
Two Prime offers institutional investment strategies and bitcoin-backed lending. The vault uses wrapped bitcoin (WBTC) to enable bitcoin-based lending on other blockchain networks. Institutional borrowers include public companies, credit-rated entities, and diversified financial institutions. Pareto provides the blockchain credit infrastructure underpinning the vault.
Key numbers and entities
Two Prime, Pareto, ICE Digital Trust, Copper Technologies, Axiom WBTC Yield Vault, $10 million in first-loss capital, 1.5% to 2% targeted annual yield, minimum deposit of 5 WBTC (~$400,000).
What remains unclear
The source does not clarify the specific terms for borrowers, the risk profile beyond first-loss capital commitment, or how performance will be managed given market conditions. The article also does not detail how institutional borrowers are selected or the exact lending mechanisms employed by the vault.