Cryptocurrency investment firm Midas is offering tokenized real-world asset (RWA) products tailored specifically to retail investors.
The mTBILL and mBasis products, launched on Tuesday, have no minimum investment requirements. That opens them up to a wide range of investors, including retail traders who are often unable to shore up large sums of capital like their institutional counterparts.
“Retail access to tokenized RWAs, like treasuries, is a game-changer,” Midas co-founder Dennis Dinkelmeyer told Decrypt. “This is about giving retail the same access to high-quality assets that institutions enjoy.”
Many real-world asset tokenized funds are targeted toward institutional investors, requiring a minimum investment of $100,000. Midas bills itself as the only RWA issuer with a regulatory-compliant offering that has no minimum investment thresholds and investor accreditation process, however.
Midas’ new product based on mBasis—the firm's yield-bearing token that tracks a delta-neutral basis trading strategy—offers investors exposure to a tokenized basis trading strategy that has offered up to 25% year-to-date returns, according to the firm. The product is the first to offer full DeFi composability of a permissionless token that is regulated, the firm said.
Meanwhile, the mTBILL product offers holders exposure to a lower-risk investment based on U.S. T-Bills, offering a return of roughly 5%, Midas’ website shows.
Both tokenized RWAs have secured regulatory approval in Liechtenstein, making them available to retail and institutional traders in various parts of Europe, according to Midas.
Early investors in the mTBill and mBASIS products can participate in an incentive program to maximize their investment returns, according to Midas. The first 100 holders of mTBILL will earn 50% APY for a limited time, which will be paid in USDC stablecoin for the first 100 holders of either mTBILL or mBasis.
RWA tokenized funds have exploded in popularity in recent months. Earlier this year, BlackRock launched its BlackRock USD Institutional Digital Liquidity Fund (BUIDL), which holds more than $500 million in assets under management, according to Etherscan data.
Meanwhile, Franklin Templeton's Franklin On-Chain U.S. Government Money Fund, which launched several years ago, has seen its assets under management balloon to roughly $430 million, according to the investment firm's website. The firm has also expanded the fund to multiple additional chains, most recently Aptos and Avalanche.
And beyond those traditional finance titans, other firms are launching RWA funds based on different underlying assets. Guggenheim Treasury Securities launched the first-ever commercialized paper fund on Ethereum earlier this month in partnership with blockchain infrastructure firm Zeconomy.
Edited by Andrew Hayward