In a significant move for the crypto ecosystem, tokenization protocol Midas is launching what it calls the “first suite of internet-native investment products” by allowing non-accredited investors access to its on-chain mTBILL and mBASIS tokens. This development positions Midas’ real-world asset (RWA) tokens as the only regulated crypto vehicles in Europe that do not require a minimum investment of $100,000.
“After a year-long process involving audits and compliance with various European regulations, we received approval for our product offerings,” Midas co-founder Dennis Dinkelmeyer stated in an interview. “Today, these are the only regulatory-compliant stablecoin yield products for retail investors across Europe.”
Midas, which raised $8.75 million earlier this year from investors including Framework Ventures, BlockTower, and HV Capital, operates two primary tokenization projects: the mTBILL, which involves U.S. Treasury bills, and the mBASIS, a yield-bearing carry trade. Both projects have received regulatory approval from Liechtenstein's Financial Market Authority.
The growing tokenization market is projected to evolve into a multi-trillion dollar industry, currently dominated by products focused on U.S. government debt, with approximately $2.3 billion in on-chain T-bills issued to date.
Dinkelmeyer noted that Midas collaborates directly with BlackRock for its mTBILL product, which has attracted $5 million in deposits and yields around 5%. This product uses BlackRock’s BUIDL fund as collateral but currently only supports stablecoin issuance and redemption, specifically USDC.
“BlackRock itself is limited to institutional investors with a minimum of $5 million in assets. Our regulatory approval allows us to target retail investors,” Dinkelmeyer explained.
The mBASIS token utilizes an actively managed, market-neutral trading strategy involving bitcoin, ether, and top altcoins, known as basis trading. This strategy exploits arbitrage opportunities when futures prices exceed spot prices, reportedly yielding returns of 20%-40% during favorable market conditions.
Dinkelmeyer emphasized that the success of stablecoins has been crucial because they are accessible to all, not just accredited investors. “For blockchains to gain widespread adoption, tokenization is a critical piece of the infrastructure,” he said.
