BlackRock Introduces Securitize's Cryptocurrency Index Fund, Securing $400 Million Investment from Mantle
In a significant move, Securitize, a BlackRock-backed RWA tokenization platform, has partnered with Mantle Treasury to launch the MI4 crypto index fund. This regulated, institutional-grade investment vehicle boasts up to $400 million in backing, setting it apart from many other tokenized funds.
The MI4 fund is designed to provide exposure to a basket of top-performing and established cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and stablecoins. By doing so, it aims to bridge the gap between decentralized finance (DeFi) and traditional finance frameworks, offering a diversified and stable exposure to the crypto market.
The fund's investment strategies also prioritise institutional-grade legal and regulatory compliance, leveraging high-quality infrastructure to create a regulated link between DeFi and conventional finance. Tokenized ownership of the fund is offered, providing liquidity and accessibility similar to traditional index products.
Compared to other tokenized institutional funds, MI4 stands out due to its large backing, robust regulatory support, and direct anchoring to major cryptocurrencies. This positions it similarly to a "crypto S&P 500," creating an institutional-grade crypto exposure product. The partnership with Mantle Treasury, a player building regulated DeFi infrastructure, reinforces the fund’s credibility and focus on compliance.
Unlike many tokenized funds which might rely on riskier or less proven assets, MI4's approach favours well-established tokens with liquidity. This reimagines traditional investment principles, like index investing, in a blockchain context, providing a regulated, accessible crypto product for institutional or large-scale investors.
The MI4 fund also offers additional earnings from decentralized finance (DeFi) staking strategies, setting it apart from other funds. Timothy Chen, Global Head of Strategy at Mantle, stated that the MI4 aims to capture all capital on-chain looking for smart beta with income and is a set-it-and-forget-it solution for institutions without the complexities of direct custody.
The launch of the MI4 fund coincides with rapid growth in the RWA tokenization market, with on-chain value growing to nearly $19 billion this week from $9.8 billion in April 2024. The success of Securitize's platform is evident, with its previously tokenized BlackRock's BUIDL fund more than doubling in value over the past month, growing from about $1 billion to $2.35 billion.
The BUIDL fund, like the MI4 fund, benefits from the flexibility and potential of tokenized securities, while mirroring traditional finance. It also offers investors the ability to seamlessly interoperate with DeFi, a feature not commonly found in traditional finance.
The new MI4 fund plans to boost returns by integrating staking strategies from Mantle's mETH, Bybit's bbSOL, and others, further solidifying its position as a pioneering regulated tokenized crypto index fund that combines institutional rigor, diversified crypto exposure, and innovative blockchain-enabled accessibility. This marks a significant step toward mainstream institutional adoption compared to other tokenized funds with less scale or regulatory grounding.
The MI4 fund, by incorporating DeFi staking strategies and prioritizing well-established tokens with liquidity, aims to offer best-in-class returns in the crypto market, positioning itself as a top choice for institutional investors. As the BUIDL fund also under Securitize’s platform has shown significant growth, the launch of the MI4 fund signifies a best-in-class approach to bridge traditional finance and technology, offering a unique investment opportunity in the burgeoning finance sector.
