Two Prime launches bitcoin lending vault on Pareto with $10 million in first-loss capital
Two Prime opens a bitcoin lending vault on Pareto
Digital asset financial services firm Two Prime has launched a bitcoin lending vault built on Pareto, a blockchain-based private credit platform. The product, named the Axiom WBTC Yield Vault, is designed to connect bitcoin holders looking for income with institutions that want to borrow bitcoin.
The vault lends to institutional borrowers and targets an annual yield of 1.5% to 2%. It accepts wrapped bitcoin (WBTC), which is a token that represents bitcoin on other blockchain networks. The minimum deposit is 5 WBTC, worth about $400,000. Returns depend on market conditions and are not guaranteed.
Key numbers from the launch
- Target annual yield: 1.5% to 2%
- Minimum deposit: 5 WBTC (about $400,000)
- First-loss capital committed by Two Prime: roughly $10 million
- Custody providers: ICE Digital Trust and Copper Technologies
What the vault is designed to do
The product expands Two Prime's lending business into onchain finance, meaning financial activities that run directly on a blockchain. Pareto supplies the underlying blockchain infrastructure for the vault, while ICE Digital Trust and Copper Technologies hold the deposited assets in custody.
Two Prime has committed roughly $10 million of its own capital as first-loss capital, which is money set aside to absorb initial losses before depositors are affected. The strategy is aimed at borrowers such as public companies, credit-rated entities, and diversified financial institutions.
What is confirmed
- Two Prime has launched the Axiom WBTC Yield Vault on Pareto.
- The vault accepts wrapped bitcoin and lends to institutional borrowers.
- The target yield range is 1.5% to 2% per year.
- Two Prime has committed about $10 million of its own capital to back the vault.
- Custody is provided by ICE Digital Trust and Copper Technologies.
What is still unclear
The source does not provide details on how many institutions have already borrowed from the vault, the exact fee structure, or the length of the lending terms.
Why it matters
The launch shows a traditional digital asset firm moving more of its lending activity onto blockchain-based infrastructure. By backing the vault with its own capital, Two Prime is taking on some of the early risk to attract outside depositors.