Two Prime Inc. (“Two Prime” or “the firm”), a leading provider of digital asset financial services to institutional investors, today announced its expansion into onchain finance in order to meet the demand of clients seeking to merge traditional finance with blockchain technology.
As part of that expansion, the firm has launched the Two Prime Axiom WBTC Yield Vault on Pareto ($pAXIOMBTC), a dedicated bitcoin lending portfolio solution that allows wrapped bitcoin (“WBTC”) holders to earn yield on their assets by lending to institutional borrowers, including public companies, credit-rated entities, and diversified financial institutions. The vault has been seeded with roughly $12 million of first-loss capital from Two Prime’s balance sheet.
For two years, Two Prime has deployed its own balance sheet to lend to leading institutional counterparties, originating more than 3,000 BTC in loans without a single default. The Axiom WBTC Yield Vault is the onchain continuation of that strategy.
“Our clients, including traditional institutional investors, are increasingly demanding a solution that merges the emerging digital asset class with traditional finance, and that’s onchain finance,” said Alexander S. Blume, Founder and Chief Executive Officer of Two Prime. “We aim to set the standard for compliant, professional, and superior products in onchain finance. Introducing Axiom WBTC Yield Vault as our first such product kicks off that journey for our firm and clients. There’s much more to come.”
The Two Prime Axiom WBTC Yield Vault is built on Pareto, an onchain private credit infrastructure provider for institutions and corporates, offering access to regulatory-compliant alternative credit products. All funds in the Two Prime Axiom WBTC Yield Vault are held in custody by ICE Digital Trust, with smart contract interactions facilitated through Copper Technologies.
“Institutions are bringing their balance sheets onchain, and they expect the same standards as on the rest of their book,” said Matteo Pandolfi, Co-Founder and CEO of Pareto. “We’re glad Two Prime chose Pareto to serve those allocators with its first onchain credit product. Axiom WBTC Yield Vault lets bitcoin holders earn yield on assets that would otherwise sit idle, and gives institutional borrowers a scalable source of bitcoin funding.”
“Two Prime has spent years building one of the most disciplined institutional lending books, and now they’re bringing that same standard onchain,” said Adam VandenBoogaard, Head of Revenue (Americas) at Copper. “Alongside ICE Digital Trust, Copper will be providing the critical infrastructure to safeguard the underlying assets in the Axiom WBTC Yield Vault. The infrastructure behind an institutional product needs to be held to the highest standards, and this latest partnership is a great example of the direction onchain finance is heading.”
In addition, Two Prime has become a vault manager on Morpho, a leading decentralized protocol and credit network that connects borrowers and lenders worldwide.
Institutions are increasingly seeking solutions to earn institutional, yield-generating returns on their bitcoin holdings, and the Two Prime Axiom WBTC Yield Vault leverages a network of high-quality borrowers with strong balance sheets to meet this demand. Through the vault, lenders have the potential to earn more consistent risk-adjusted returns on their bitcoin holdings, while borrowers can access bitcoin markets in a compliant manner with a lower liquidity risk profile.
The Two Prime Axiom WBTC Yield Vault requires a minimum deposit of 5 WBTC, approximately $400,000 USD. Two Prime’s strategy targets an estimated 1.5-2.0% APY on WBTC (subject to market conditions and not guaranteed).
Two Prime delivers investment strategies, bitcoin-backed lending, and capital markets execution for institutions that demand precision, transparency, and disciplined risk management. The firm’s institutional clients include digital asset treasury companies, public bitcoin miners, hedge funds, family offices, and other sophisticated market participants.
“Onchain returns for WBTC and other BTC derivative products have historically been depressed due to the limited opportunities to productively deploy BTC within the constraints of smart contracts,” said Matthew Sullivan, Director of Operations at Two Prime. “This strategy seeks to bridge this gap by satisfying institutional demand and making it accessible to token holders — giving depositors access to higher yields while maintaining a defined credit risk profile.”
To learn more about the Two Prime Axiom WBTC Yield Vault, please visit the Pareto site.
About Two Prime Inc.
Two Prime builds financial products that connect digital assets and traditional markets, serving institutions through investment strategies, bitcoin-backed lending, and onchain finance. The firm is an SEC-Registered Investment Adviser and CFTC-Registered Commodity Trading Adviser, and works with clients including corporate treasuries, miners, institutional allocators, family offices, and high-net-worth individuals.
For more information, visit twoprime.com or follow us on:
X: @Two_Prime
LinkedIn: Two Prime
About Pareto
Pareto is an onchain private credit infrastructure provider for institutions and corporates, offering lenders yield-generating opportunities and borrowers seamless access to capital.
Tailored for asset managers, digital asset funds, fintechs and other professional market participants, Pareto provides access to regulatory-compliant alternative credit products through its Credit Vaults, alongside whitelabel infrastructure that enables partners to launch and distribute vaults under their own brand.
For more information, visit pareto.credit or follow us on:
X: @paretocredit
LinkedIn: Pareto Credit
Disclosures
The Two Prime Axiom WBTC Yield vault (the “Vault”) is an onchain lending vault available only to eligible, verified participants and is governed by the applicable Vault terms. Participation involves material risk, including the risk of total loss of deposited assets. Lenders bear credit, liquidity, smart-contract, custody, wrapped-asset, and other digital-asset risks. If borrower losses exceed the Vault’s subordinated first-loss tranche, lenders bear those losses up to and including total loss of deposited assets. The first-loss tranche is limited in size, is not insurance, and is not a guarantee. The Vault is not insured by the FDIC, SIPC, or any other governmental or private insurance program.
The Vault operates on Pareto, a third-party platform that is not controlled by Two Prime. Deposits and withdrawal requests are processed through Pareto and governed by the Credit Vault’s terms. Custody of underlying assets is provided by ICE Digital Trust. Wrapped bitcoin (WBTC) is a tokenized representation of bitcoin that depends on its issuer and custody arrangements and may lose its peg, become impaired, or fail, independent of the performance of the Vault’s loans.
Any target rate of return is an estimate based on current conditions, is only for the applicable cycle, is not guaranteed, and may change. Actual returns may be materially lower, including zero or a loss of principal. Loan origination history and other past results are not indicative of future results.
The regulatory classification of onchain lending arrangements, vault interests, and digital assets is uncertain and evolving, and regulatory action could restrict, prohibit, or alter the Vault.
Two Prime Inc. (“Two Prime”) is a Registered Investment Adviser registered with the U.S. Securities and Exchange Commission (“SEC”). Registration with the SEC does not imply a certain level of skill or training. Two Prime is registered as a Commodity Trading Advisor (“CTA”) with the U.S. Commodity Futures Trading Commission (“CFTC”) and is a Member of the National Futures Association (“NFA”). CFTC and NFA registration does not imply endorsement or a certain level of skill or training. These registrations do not guarantee performance, prevent loss, or extend advisory or regulatory protections to Vault participants.
Futures, options, and swaps involve substantial risk and are not appropriate for all investors. The use of leverage can magnify both gains and losses. Past performance is not indicative of future results. No investment strategy, including those involving derivatives, can assure profits or prevent losses. Nothing herein constitutes an offer to sell, or a solicitation of an offer to buy, any security, commodity interest, or other financial instrument. Any such offer or solicitation will be made only through formal offering materials that include important information about risks, fees, and expenses and are available solely to eligible investors.
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