Two Prime has expanded its bitcoin lending operations into onchain finance by launching a new institutional lending vault through Pareto.

The digital asset financial services firm said its Axiom WBTC Yield Vault accepts wrapped bitcoin (WBTC) and aims to generate annual yields between 1.5% and 2% by providing financing to institutional borrowers.

The vault is available to investors depositing at least 5 WBTC, worth about $400,000. Two Prime cautioned that the targeted returns depend on market conditions and are not guaranteed.

The launch gives bitcoin holders a way to seek income from their holdings while connecting them with institutions looking to obtain bitcoin-based financing.

Two Prime has committed approximately $10 million of its own capital to the strategy, providing a buffer for initial losses. The company’s broader business includes institutional investment strategies and bitcoin-backed lending.

Potential borrowers include publicly traded companies, credit-rated entities and diversified financial institutions.

Pareto supplies the underlying blockchain-based private-credit infrastructure, while ICE Digital Trust and Copper Technologies will provide custody for the vault’s assets.