Midas Launches MBTC: A New Wrapped Bitcoin Product Offering 4% Yield

Midas’s mBTC: A Game-Changer for Non-Accredited Investors in the EU

Midas Launches mBTC – Tokenization protocol Midas announced on Thursday the launch of its new wrapped bitcoin product, mBTC, which will offer a yield of 4% paid in bitcoin-denominated assets instead of fiat currency. This innovative token allows users to earn returns on their bitcoin holdings, significantly enhancing the utility of Bitcoin within the decentralized finance (DeFi) ecosystem.

Initial Support for wBTC and cbBTC

The Ethereum-based protocol will initially support the largest wrapped bitcoin asset, wBTC, and plans to add support for Coinbase’s new token cbBTC shortly thereafter. Midas CEO Dennis Dinkelmeyer explained to The Block that the yield generated from mBTC will be accomplished through partnerships with institutional asset managers and lenders, ensuring a robust and secure return for investors.

Regulatory Milestone in the EU

Earlier this month, Midas made headlines in the European Union by launching the first regulated tokenized products available to non-accredited investors. This groundbreaking step signifies Midas’s commitment to expanding access to cryptocurrency investments and facilitating user engagement in the DeFi sector.

Open and Permissionless Protocol

The mBTC protocol will be “open and permissionless,” making it fully compatible with the broader EVM-based DeFi landscape. Upon launch, users will be able to yield farm on the decentralized lending protocol Morpho, with more integrations expected soon. The Midas team highlighted that this initiative aligns with the growing trend of enhancing Bitcoin utility in DeFi, aiming to provide institutional-quality products that empower crypto users.

Availability and Asset Management

Similar to its existing mTBILL and mBASIS tokens, mBTC will not be accessible to users in the U.S. or sanctioned countries. The assets associated with mBTC will be managed within a bankruptcy-remote Special Purpose Vehicle (SPV), with a third-party regulated administrator overseeing performance updates to ensure transparency and security for investors.