Midas, a protocol for issuing yield-bearing tokens backed by U.S. Treasuries and other assets, has launched Liquid Yield Tokens (LYT) linked to actively managed, decentralized finance (DeFi) funds, starting with Edge Capital, RE7, and MEV Capital.

Key Points:

• Liquid Yield Tokens can be collateralized in DeFi, originating with Euler and Morpho.
• Last year, Midas received regulatory approval to issue basis trades and U.S. Treasuries tokens in Liechtenstein, enabling passporting across Germany and Europe.

Tokenization builders in the crypto sector recognized the demand for yield-bearing alternatives to existing stablecoins like Tether’s USDT and Circle’s USDC which keep the interest from reserves.

Recent product additions from Midas reflect evolving market conditions. For example, their tokenized T-Bill product was launched when interest rates were about 5% compared to lower DeFi markets around 2%.

Midas emphasized that the unique Liquid Yield Tokens target yields up to 20%. “We’ve partnered with leading firms like Edge Capital, RE7 Capital, and MEV Capital to enhance yield expertise,” Dinkelmeyer commented. “These managers excel in yield sourcing, from T-Bills to basis trades and beyond.”

Midas aims to offer wide access to these tokens through a simplified issuance and redemption process for users.