Two Prime is taking its bitcoin lending business further into onchain markets with a new vault on Pareto aimed at institutional investors.
The digital asset financial services company has introduced the Axiom WBTC Yield Vault, which accepts wrapped bitcoin (WBTC) and lends the underlying exposure to institutional borrowers. The strategy targets annual yields of 1.5% to 2%, although actual returns will depend on market conditions and are not guaranteed.
The product has a minimum investment requirement of 5 WBTC, equivalent to about $400,000 based on the stated bitcoin price.
The vault represents an expansion of Two Prime’s lending operations into blockchain-based finance. Its model is designed to link bitcoin holders seeking income with institutional borrowers looking for bitcoin financing.
Two Prime has allocated around $10 million of its own capital to the strategy. That commitment is intended to cover initial losses as the lending program gets underway.
The vault is expected to lend to a range of institutional counterparties, including public companies, credit-rated borrowers and diversified financial institutions.
Pareto provides the onchain private-credit infrastructure for the vault. Custody of the assets will be handled by ICE Digital Trust and Copper Technologies.
