Quick take:
- The fundraising also attracted participation from Coinbase Ventures, GSR, Hack VC, Ledger, FJ Labs, Lattice Capital, and Theia Ventures among others.
- The company also announced the launch of the $mTBILL, a stablecoin that will enable users to earn US T-Bills yield on-chain.
- The Midas Short-Term US Government Treasury ETF note tracks US T-Bills via an ultra-liquid BlackRock fund.
Midas Protocol, a real-world asset tokenisation protocol enabling users to earn native interest from US treasury bills has completed an $8.75 million funding round co-led by BlockTower Capital, Framework Ventures and HV Capital.
The fundraising also attracted participation from Coinbase Ventures, GSR, Hack VC, Ledger, FJ Labs, Lattice Capital, and Theia Ventures among others.
Midas is introducing the $mTBILL, a stablecoin that will enable users to earn US T-Bills yield on-chain. According to the company, launching a stablecoin during a non-zero interest rate period could be disruptive to the stablecoin industry given the leading providers Tether (USDT) and Circle (USDC) launched during zero interest-rate times.
“After reaching peaks of over $187b, the stablecoin supply rapidly contracted to under $120b in a year, coinciding with the rise in the risk-free rate from 0% to 5%,” Midas wrote on X. “On-chain returns shrank, and investors withdrew capital to reallocate to safer assets like US T-Bills,” the company said, adding using a graphic illustration.
According to Midas, for stablecoins to continue being a competitive investment option, they must at least match the risk-free rate of return offered by US T-Bills. That’s why it is launching its yield-focused stablecoin $mTBILL.
Midas believes since traditional providers can not legally distribute yield, its product is designed to fill that gap by providing exposure to yield, regulatory-compliant yield distribution, compatibility with DeFi protocols, and institutional-grade security.
“$mTBILL represents the future of stablecoins, addressing inefficiencies and introducing a new era of yield-bearing potential. It crafts the standard for on-chain capital, melding traditional and decentralised yield to pave the way for the revamped growth of stable funds.” Midas wrote.
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