Two Prime Launches $10M-Backed Bitcoin Yield Vault for Onchain Finance

Digital asset financial services firm Two Prime is moving further into onchain finance with a new bitcoin lending vault on Pareto, designed to provide institutional investors with a potential source of yield.

The Axiom WBTC Yield Vault accepts wrapped bitcoin (WBTC), a tokenized version of bitcoin that can be deployed across other blockchain networks. Two Prime said the strategy targets annual returns of 1.5% to 2% by lending bitcoin to institutional borrowers.

Investors must deposit at least 5 WBTC, worth approximately $400,000. The targeted returns are dependent on market conditions and are not guaranteed.

The launch extends Two Prime’s existing lending operations into onchain markets. The company aims to connect bitcoin holders looking for income with institutions that need access to bitcoin-based financing.

Two Prime, which offers institutional investment strategies and bitcoin-backed lending services, has committed approximately $10 million of its own capital to the strategy. The capital is intended to absorb initial losses and support the vault as lending activity develops.

The vault will target borrowers such as publicly traded companies, credit-rated organizations and diversified financial institutions.

Pareto provides the blockchain-based private-credit infrastructure supporting the product, while ICE Digital Trust and Copper Technologies are responsible for asset custody.