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Apollo Crypto is set to manage a new regulatory-compliant USDC-denominated tokenized strategy called mEVUSD, co-developed with noncustodial staking infrastructure provider Everstake and onchain investment platform Midas, according to an announcement on Thursday.
Such mEVUSD product is designed to follow a yield strategy aimed at “transforming idle stablecoin balances into productive digital holdings” while minimizing directional market exposure by earning returns “from financing and interest rate spreads rather than crypto price movements,” the announcement said.
Apollo will act as the risk curator and actively manage the tokenized strategy, which will involve “diversified lending” and market-neutral basis trading across “blue-chip” decentralized protocols including Aave, Morpho, and Pendle.
“Our role is to curate the most efficient yield strategies while maintaining a thorough risk framework, ensuring that institutions can access elevated rewards without compromising on security or regulatory alignment,” Apollo’s Henrik Andersson said in a statement.
The product aims to generate between 7%-12% annual returns. It will be available to institutional clients in the European Union and other select jurisdictions, barring U.S., UK, Canada, China, Australia, and sanctioned jurisdictions like Iran.
Non-crypto-native institutions are only beginning to open up to tokenized investment opportunities, in part driven by regulatory clarity in the EU under the MiCA regime and emerging guidelines in the U.S.
Many of these investments are tokenized versions of relatively simple money market fund structures, like BlackRock’s BUIDL or Franklin Templeton’s OnChain U.S. Government Money Fund, both of which invest in U.S. government debt.
RWA.xyz estimates there is about $11.09 billion worth of tokenized Treasurys.
David Kinitsky, chief corporate development officer at Everstake, argued in the statement that “passive yield is no longer sufficient” for institutions looking to move into onchain finance. The firms further claimed that there is already a “yield gap” in the market, “where money markets and treasury bills no longer satisfy institutional demand for higher onchain returns.”
Everstake is set to integrate a proprietary SDK into Midas’ audited smart contracts, which provide access to tokenized strategies via an API at the wallet level and for custodians.
Midas’ mTBILL and mBASIS offerings, built around tokenized Treasuries and a crypto basis trade strategies, were the first tokenized funds to be open to non-accredited investors in the EU. It has also launched a wrapped bitcoin product, mBTC, and tokenized XRP product, mXRP.
