A Tokenization Protocol Unveils New Crypto Asset Offering Bitcoin Returns

The tokenization protocol Midas has announced the launch of its new "wrapped Bitcoin" product, mBTC, which offers returns denominated in Bitcoin. This new token allows users to earn a 4% return on their Bitcoin holdings, with returns paid in Bitcoin-based assets rather than fiat currency.

Midas disclosed in a blog announcement that the Ethereum-based protocol would initially support the largest "wrapped Bitcoin" asset, wBTC, and Coinbase's (COIN) new token, cbBTC. These returns will be generated through collaborations with institutional asset managers and lenders, according to information shared in a blog post on Thursday.

First compliant tokenization products in Europe Earlier this month, Midas claimed a milestone by launching the first regulated tokenized products available to non-accredited investors in the European Union. The new mBTC protocol will likewise be "open and permissionless," making it fully compatible with the broader EVM-based DeFi sector. Initially, users will be able to engage in yield farming on the decentralized credit protocol Morpho, with plans for further integrations in the near future. The Midas team stated that this launch aligns with the trend of increasing Bitcoin usage in DeFi and aims to provide crypto users with access to institutional-grade products.

Access restrictions and performance updates Like the existing mTBILL and mBASIS tokens, mBTC will not be available in the United States or in countries under sanctions. The assets will be held in a "Special Purpose Vehicle" protected against bankruptcy risk, with performance updates provided by a third-party regulatory authority.