Two Prime makes onchain finance push with $10 million-backed bitcoin yield vault

Digital-asset financial services firm Two Prime has introduced an onchain bitcoin lending vault built on Pareto, aiming to offer institutional investors a way to earn yield on wrapped bitcoin (WBTC). Branded the Axiom WBTC Yield Vault, the product accepts WBTC — the tokenized representation of bitcoin used on other blockchains — and routes those assets into institutional lending arrangements.

The strategy seeks to deliver annual returns in the 1.5%–2% range by extending loans to institutions, with prospective borrowers including public companies, credit-rated entities and diversified financial firms. Two Prime says returns will depend on market conditions and are not guaranteed, and the vault enforces a relatively high minimum deposit of 5 WBTC (about $400,000 at current valuations).

To support the structure, Two Prime has committed roughly $10 million of first-loss capital to absorb initial losses, while custody of assets in the vault will be handled by ICE Digital Trust and Copper Technologies. Pareto provides the blockchain-based private credit infrastructure that underpins the vault and facilitates the onchain settlement and recordkeeping.

The launch reflects Two Prime's expansion of its lending business into onchain finance, connecting bitcoin holders seeking income with institutional borrowers that require access to bitcoin funding. By using WBTC and blockchain-native infrastructure, the firm is positioning the product for investors and counterparties operating in decentralized and hybrid onchain environments.