Prime Invest Launches Institutional Bitcoin Vault with $10 Million Capital

Prime Invest has launched an institutional Bitcoin (BTC) loan-based yield product with approximately $10 million (about 136 billion won) of its own capital. The product generates income by lending Bitcoin held by the institution to institutional borrowers, rather than simply holding Bitcoin.

CryptoScoops reported on May 15 that Prime Invest unveiled a 'Axiom WBTC Yield Vault' based on Pareto's infrastructure. The product lends wrapped Bitcoin (WBTC) to institutional borrowers with an annual yield target of 1.5-2%. Borrowers include public enterprises, credit-rated institutions, and diversified financial institutions.

The targeted yield may vary depending on market conditions and is not guaranteed. The minimum deposit amount is $250,000 (about 340 million won). Initial acceptance limits are set at 1,350 BTC, valued at approximately $14 million (about 141.4 billion won) as of the reporting date.

Prime Invest explained that it has allocated its own capital to absorb initial losses, though this does not guarantee protection for deposited principal or yield. Actual loss amounts may vary based on borrowers' repayment capacity, collateral management, and market liquidity. The product structure indicates that borrower creditworthiness and collateral conditions are key risk factors over yield rates.

Prime Invest describes itself as an SEC-registered investment advisor providing institutional Bitcoin investment strategies and Bitcoin-backed loans. The company positions the service as a financial solution targeting institutional liquidity needs.

The core infrastructure for this product is provided by Pareto, which operates an on-chain credit infrastructure connecting institutional borrowers with capital providers. Pareto manages loan terms and fund flows through its Credit Vault platform, designed to allow users to verify yield rates, total deposits, and maturity dates on the blockchain.

On-chain vaults are structured as secure storage systems that track asset management information and fund flows on the blockchain. Asset custody is handled by ICE Digital Trust and Copper Technologies. ICE Digital Trust is a New York State-licensed trust company providing digital asset custody services, while Copper Technologies offers institutional digital asset custody, settlement, and collateral management infrastructure.

The product will be distributed through BitGo's Earn platform, though specific launch dates, eligible regions, and accessibility for retail investors remain unconfirmed. WBTC is a token designed to maintain Bitcoin price exposure while enabling use in other blockchain-based financial services.

This product aims to expand the application of Bitcoin-based finance by lending WBTC through on-chain vaults to institutional borrowers. Institutional loan vaults deploy funds into specific loan strategies, with the manager overseeing collateral and risk limits. The company notes that decentralized finance (DeFi) loan vaults have grown to approximately $9 billion (about 1.224 trillion won), with capital management increasingly concentrated among a few fund managers.

Risks include borrower defaults, collateral value declines, liquidity shortages, smart contract errors, and custody institution issues. Specific collateral ratios, liquidation conditions, redemption periods, and loss allocation order have not been disclosed. Prime Invest's product launch represents an expansion of institutional Bitcoin finance beyond simple holding into combined lending, custody, and on-chain credit infrastructure.

Actual operational performance and distribution terms will be confirmed through future detailed product disclosures.