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
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