Two Prime, a digital asset financial services firm, unveiled the Axiom WBTC Yield Vault on Pareto, a blockchain-based private credit infrastructure provider, offering institutional investors annual yields between 1.5% and 2% through lending to institutional borrowers.
The vault accepts wrapped bitcoin (WBTC), a token representing bitcoin usable on other blockchain networks. Two Prime committed $10 million in first-loss capital to the product. The initial vault capacity stands at 1,350 BTC, equivalent to approximately $104 million in USD value at the time of announcement.
Minimum deposits are set at $250,000 in WBTC. Two Prime targets borrowers including public companies, credit-rated entities, and diversified financial institutions. Returns are subject to market conditions and not guaranteed.
Custody and Distribution
ICE Digital Trust and Copper Technologies provide custody of vault assets. BitGo, a distribution platform for vault products, handles distribution of the offering through its earn platform.
Two Prime provides institutional investment strategies and bitcoin-backed lending. Pareto supplies the blockchain-based private credit infrastructure underlying the vault structure.
Product Details
The vault represents an expansion of onchain finance products targeting institutions seeking yield on bitcoin holdings. WBTC enables bitcoin to be deployed across decentralized finance and blockchain-based lending protocols where native bitcoin cannot be used directly.
Institutional adoption of bitcoin yield vaults has grown as companies and financial institutions seek returns on idle cryptocurrency reserves. The 1.5% to 2% yield target positions the vault within the range of traditional institutional lending returns.
