Tokenization Protocol Midas Launches Earnings Token mBTC, Paying Earnings in Bitcoin-Denominated Assets

Tokenization protocol Midas announced on Thursday, Oct. 24, that it will launch mBTC, an encapsulated bitcoin product that will pay 4 percent in bitcoin-denominated assets rather than in a fiat currency, The Block reported. The token is a way for users to earn a return on their bitcoin holdings. The protocol is based on ethereum, and it will initially support the encapsulated bitcoin asset wBTC, as well as Coinbase's new token cbBTC.

A blog post on Thursday noted that returns will be generated “through partnerships with institutional asset managers and lenders.” Its new mBTC protocol will be similarly “open and license-free,” making it fully compatible with the broader EVM-based DeFi space. At launch, users will be able to mine for liquidity on the decentralized lending protocol Morpho, with more integrations coming soon. As with the existing mTBILL and mBASIS tokens, mBTC will not be launched in the US or sanctioned countries. Assets will be held in an insolvency segregated Special Purpose Vehicle (SPV), while a third-party regulated administrator will provide performance updates.