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Securitize Partners with Mantle for Institutional Cryptocurrency Fund

Tokenization platform Securitize has announced a strategic partnership with the decentralized finance (DeFi) protocol Mantle to spearhead the development of an institutional fund. This innovative fund is specifically designed to generate yield from a diversified portfolio of cryptocurrencies, as detailed in the companies’ recent statements.

Overview of the Mantle Index Four (MI4) Fund

The Mantle Index Four (MI4) Fund is crafted to provide investors with a diverse exposure to a selection of cryptocurrencies. This includes major players like Bitcoin (BTC), Ether (ETH), and Solana (SOL). Additionally, the fund plans to incorporate stablecoins that are pegged to the US dollar. According to Securitize’s announcement on April 24, this fund operates much like a traditional index fund, offering a balanced investment strategy within the crypto space.

In a bid to improve returns further, the MI4 Fund will also integrate liquid staking tokens. Notable examples include Mantle’s mETH, Bybit’s bbSOL, and Ethena’s USDe. These instruments are expected to enhance the fund’s overall yield, effectively incorporating on-chain earnings into its strategy.

Rising Interest in Cryptocurrencies

The fund’s launch is timely, coinciding with a noticeable surge in demand for cryptocurrencies among both retail investors and institutional entities. Particularly, Bitcoin has gained attention as a potential hedge against ongoing macroeconomic uncertainties. As more investors seek to diversify their portfolios and mitigate risks, vehicles like the MI4 Fund are becoming increasingly appealing.

Market Capitalization-Weighted Index Fund

As part of its ambition, the MI4 Fund aims to establish itself as the “de facto SPX or S&P 500 of crypto,” a statement made by Timothy Chen, Mantle’s global head of strategy. This comparison underscores the fund’s goal of becoming a benchmark for crypto investments.

By providing institutions with a viable means to derive yield from digital assets, the MI4 Fund taps into a growing market. According to data from DefiLlama, one of Mantle’s liquid staking products, Mantle Staked Ether (mETH), offers holders a yield of approximately 3.78% APR as of April 24. The protocol showcasing these advancements has successfully locked in over $680 million in total value, indicating significant confidence in its mechanisms.

Securitize: A Leader in Tokenization

Securitize stands out as a leading platform for tokenizing real-world assets (RWAs), holding around 71% of the market share as of April 24, according to RWA.xyz. Among its offerings, the BlackRock Institutional Digital Liquidity Fund (BUILD) is especially noteworthy, with net assets exceeding $2.5 billion.

Carlos Domingo, co-founder and CEO of Securitize, previously expressed to Cointelegraph that there is an accelerating demand for tokenized funds. He noted that this trend is fueled by institutional investors, private equity firms, and credit managers turning to tokenization to enhance efficiency, reduce operational frictions, and improve liquidity.

How AI legalese decoder Can Help

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Conclusion

In summary, the collaboration between Securitize and Mantle marks a significant step forward in the institutional adoption of cryptocurrency through yield-generating instruments. With the launch of the MI4 Fund, investors can look to diversify their portfolios within the digital realm while also having the advantage of modern technological innovations like the AI legalese decoder to guide them through the intricacies involved in these investment opportunities.

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