Midas Launches Internet-Native Investment Products

Tokenization protocol Midas has launched what it calls the first suite of internet-native investment products, offering access to its on-chain mTBILL and mBASIS tokens to non-accredited investors. This initiative positions Midas’ real-world asset (RWA) tokens as the only regulated crypto vehicles in Europe not requiring a minimum investment of $100,000.

Background

Midas co-founder Dennis Dinkelmeyer mentioned in an interview with The Block that after a thorough year-long process involving audits and compliance with various European regulations, they received approval for their product offerings. According to him, these are the only regulatory-compliant stablecoin yield products available for retail investors across Europe.

The startup, which raised $8.75 million this year from Framework Ventures, BlockTower, and HV Capital, runs two tokenization projects: mTBILL, related to U.S. Treasury bills, and mBASIS, which involves a yield-bearing carry trade. Both projects have received regulatory approval from the Liechtenstein Financial Market Authority.

Market Context

The tokenization sector is expected to evolve into a multi-trillion dollar industry, currently led by products providing exposure to U.S. government debt. To date, around $2.3 billion worth of on-chain T-bills has been issued.

Dinkelmeyer shared that Midas collaborates directly with BlackRock on its mTBILL product, which has accumulated $5 million in deposits and offers approximately 5% yield. The product utilizes BlackRock’s BUIDL fund as collateral and currently accepts only stablecoins like USDC for issuance and redemption.

Democratizing Finance

“BlackRock is restricted to institutional investors with a minimum of $5 million in assets. We can target retail investors thanks to our regulatory approval,” Dinkelmeyer emphasized, pointing out that they have essentially digitized existing barriers in traditional finance, which contradicts the concept of tokenization.

Similarly, mBASIS employs an actively managed, market-neutral trading strategy that utilizes bitcoin, ether, and “top altcoins,” referred to as a basis trade. This strategy attempts to capitalize on arbitrage opportunities when futures prices surpass spot prices, boasting returns of around 20%-40% during favorable market conditions.

However, Midas has not disclosed the name of the institutional asset manager overseeing mBASIS.

Future Directions

Midas’ products are currently implemented on EVM chains, including Ethereum and Base, with interest expressed from the Solana Foundation. The firm also has a Telegram mini-app boasting 1.5 million users, although it has not undergone auditing yet.

In discussing the importance of stablecoins, Dinkelmeyer remarked that their widespread adoption is attributed to their accessibility to everyone, not just accredited investors. “For blockchains to become useful and widely adopted, tokenization is a critical piece of the infrastructure,” he added. By ensuring participation from all users, Midas aims to democratize access to high-quality savings products and unlock on-chain use cases to facilitate the mass-market adoption of blockchains.

> Disclosure: The Block's Director of Special Projects, Frank Chaparro, is an investor in Midas.