Ether.fi deploys $100 million into Plume's RWA vault to provide institutional yield access

Ether.fi is deploying $100 million into a Plume-managed vault to provide its users with access to institutional-grade yield from real-world assets (RWAs). The new EtherFi Liquid RWA product, with an initial $25M cap, aims to meet strong demand for stable returns with reduced DeFi risk. The vault includes assets like BlackRock and Fidelity ETFs and is part of a broader trend of major financial players tokenizing traditional assets onchain.

Ether.fi $100M vault deployment

• ▪Ether.fi is deploying $100 million into a Plume-managed real-world asset (RWA) vault.
• ▪The launch is part of Ether.fi's broader strategy to expand into onchain banking.
• ▪The new EtherFi Liquid RWA vault has an initial cap of $25 million.
• ▪The vault's assets can be used as spend collateral on the EtherFi Cash product at 70% loan-to-value.
• ▪The deployment launched Ether.fi's new product, EtherFi Liquid RWA, which provides institutional-grade rewards on stablecoins.

Institutional onchain yield demand

• ▪Users are seeking more stable onchain yield options due to the volatility and exploitative risks of decentralized finance (DeFi).
• ▪ether.fi's Head of Ecosystem Charles Mountain noted strong demand for earn products with institutional-grade risk and a reduced DeFi surface.
• ▪The vault provides access to previously restricted markets, including high-quality fixed income and institutional credit.
• ▪The partnership aims to give Ether.fi's users, who have over $6 billion in deposits, access to RWA yield.
• ▪Initial assets in the vault include BlackRock’s iShares AAA CLO ETF and the Fidelity Total Bond ETF.

Plume vault compliance framework

• ▪Plume has received Securities and Exchange Commission transfer agent approval through its partner, Kimber Transfer Agency.
• ▪Plume's RWA vaults are non-custodial and compliance-focused.
• ▪Plume holds a license from the Bermuda Monetary Authority.

Tokenized RWA market growth

• ▪Tokenized real-world assets (RWAs) are one of the fastest-growing sectors in the crypto industry.
• ▪Major asset managers including BlackRock, Apollo, WisdomTree, and Hamilton Lane have expanded their tokenization efforts in the past year.

DeFi vault product structure

• ▪The new vault is available directly through ether.fi's application.
• ▪DeFi vaults bundle complex investment strategies into a single product to simplify deposits and withdrawals for users.
• ▪Plume's vaults are structured like income products, offering yield from a basket of assets sourced from managers overseeing over $10 trillion.

2 sources