In an EU first, tokenization firm Midas opens mTBILL and mBASIS tokens to retail traders

Tokenization protocol Midas is launching what it calls the “first suite of internet-native investment products” after opening access to its onchain mTBILL and mBASIS tokens to non-accredited investors. In short, this makes Midas’ real-world asset (RWA) tokens the only regulated crypto vehicles in Europe not subject to a minimum investment of $100,000.

“After a year-long process involving audits, a registration and notification with various European regulations, we received approval for our product offerings,” Midas co-founder Dennis Dinkelmeyer told The Block in an interview. “Today, these are the only regulatory-compliant stablecoin yield products for retail investors across Europe.”

Midas, a startup that raised $8.75 million in a round led by Framework Ventures, BlockTower and HV Capital earlier this year, runs two tokenization projects: one involving U.S. Treasury bills (i.e. mTBILL) and the other a yield-bearing carry trade ( mBASIS ). Both received regulatory approval from Liechtenstein's Financial Market Authority.

The tokenization space, projected to grow into a multi-trillion dollar industry in the coming years, is currently dominated by products offering exposure to U.S. government debt. Some $2.3 billion worth of onchain T-bills has been issued to date.

Dinkelmeyer says the startup works directly with BlackRock on its mTBILL product, which has so far attracted $5 million in deposits and currently yields around 5%. The vehicle uses BlackRock’s BUIDL fund as supported collateral but only supports stablecoins like USDC for issuance and redemption today.

“BlackRock itself is limited to institutional investors with a min of $5 million in assets. We can target retail with our regulatory approval,” Dinkelmeyer said. “In essence, we've just digitized the same old barriers that exist in traditional finance which defeat the point of tokenization.”

The same is true for Midas’ mBASIS token, which deploys an actively managed, market-neutral trading strategy using bitcoin, ether and “top altcoins” called a basis trade. Also called a carry trade, as seen in Ethena's USDe "synthetic dollar," the strategy capitalizes on the arbitrage opportunity that opens up when futures prices exceed spot prices.

mBASIS has reportedly seen returns of 20%-40% “during favorable market conditions.” Its documentation claims it is managed by a “licensed institutional asset manager” well-known in the crypto space, though Dinkelmeyer was unable to confirm the name of the firm.

Dinkelmeyer described the recent announcement in terms of the success of stablecoins, one of the few areas in crypto to find real product-market fit in part because they’re open for anyone to use.

“The reason why they were able to be widely adopted is because everyone could participate, not just accredited investors. For blockchains to be useful and widely adopted, tokenization is a critical piece of the infrastructure,” he said. “By allowing all users to participate we democratize access to high-quality savings products and unlock on-chain use-cases to pave the for mass-market adoption of blockchains.”

Disclosure: The Block's Director of Special Projects Frank Chaparro is an investor in Midas.