U.S. investment advisor Two Prime has partnered with staking infrastructure provider Figment to offer cryptocurrency yield opportunities to institutional clients, reflecting growing institutional interest in blockchain yield strategies.
Through this partnership, institutional clients of Two Prime can utilize yield strategies for Bitcoin (BTC) and over 40 other digital asset protocols, including Ethereum and Solana. The company announced this collaboration on Tuesday.
Two Prime, a crypto investment advisor registered with the U.S. Securities and Exchange Commission, manages about $1.75 billion in assets and operates one of the largest Bitcoin lending businesses in the industry.
In July, Bitcoin mining company MARA Holdings acquired a minority stake in Two Prime, significantly increasing the amount of BTC managed by the firm.
Several blockchain companies are turning to Bitcoin yields to unlock the potential of $23 trillion in assets. Solv Protocol has launched a structured yield system to generate BTC yields by combining decentralized and traditional finance strategies.
Coinbase has also entered this field, launching a Bitcoin yield fund aimed at non-U.S. investors, with yields of up to 8%.
Related: Bitcoin yield demand surges, institutions seek liquidity
Institutional adoption is driving increased demand for Bitcoin yields.
Bitcoin's historical high yields have attracted more investor attention to yield-generating strategies.
As hedge funds, family offices, and others get involved in Bitcoin, they increasingly seek solutions that can provide stable returns. Unlike crypto enthusiasts who pursue long-term holding, institutions view Bitcoin as part of a diversified portfolio, with yield becoming an expected component.
Javier, Chief Investment Officer of digital asset manager XBTO, stated that Bitcoin's maturity requires complex solutions beyond simple holding.
Bitcoin yield strategies may see more development, especially as more companies incorporate it into their balance sheets. According to industry trackers, public and private enterprises collectively hold about 1.509 million BTC.
Related: Venture Capital Overview: Bitcoin DeFi Surge, but Tokenization and Stablecoins Rapidly Develop
