Mantle, a leading blockchain ecosystem in decentralized finance (DeFi), has partnered with Securitize, a top real-world asset tokenization platform, to launch the Mantle Index Four (MI4) Fund. This new institutional-grade digital asset index fund is designed to provide investors with yield-generating exposure to a diversified basket of major cryptocurrencies, including Bitcoin (BTC), Ether (ETH), Solana (SOL), and USD stablecoins.

Image Source: Mantle

About Mantle:

Mantle is a pioneering blockchain ecosystem focused on revolutionizing finance by bridging traditional and decentralized finance with innovative products like the Mantle Network, mETH Protocol, and MI4 Fund. With over $3 billion in Total Value Locked (TVL), Mantle empowers users and institutions in the Web3 era.

About Securitize:

Securitize is a leader in tokenizing real-world assets, partnering with top asset managers such as BlackRock, Apollo, and KKR. The company provides a comprehensive platform for issuing and managing tokenized securities, facilitating institutional adoption of blockchain technology.

Bridging TradFi and DeFi with a Tokenized Fund

The MI4 Fund addresses a critical gap in the market by offering a crypto product that combines native yield generation with a traditional fund structure. This makes it accessible and attractive to both crypto-native investors and traditional financial institutions seeking streamlined exposure to digital assets without the complexities of self-custody or active asset selection.

Structured as a British Virgin Islands (BVI) Limited Partnership and managed by Mantle Guard Limited, MI4 integrates regulated fund architecture with decentralized yield strategies. The fund dynamically allocates assets based on market capitalization and risk parameters, rebalancing quarterly to optimize returns and risk management.

Anchor Investment and Tokenization Innovation

Mantle Treasury has committed up to $400 million as the anchor investment, demonstrating strong confidence in the fund’s structure and long-term potential. The Mantle DAO approved this governance proposal earlier this year, underscoring community support.

Securitize brings its industry-leading tokenization infrastructure to the partnership, enabling investors’ fund interests to be tokenized on the Mantle Network. This tokenization unlocks unique crypto-native advantages such as real-time on-chain liquidity, transferability between authorized participants, and the ability to use tokenized fund shares as collateral for leverage on supported platforms—all while complying with private placement regulations.

Yield Enhancement Through DeFi Staking

MI4 incorporates innovative staking strategies to enhance returns, leveraging liquid staking tokens such as Mantle’s mETH, Bybit’s bbSOL, and Ethena’s sUSDe. These DeFi-native yield products allow the fund to generate income without sacrificing investor protections or regulatory compliance.

The fund also utilizes institutional-grade security infrastructure, including Fireblocks and multi-signature controls, with plans to onboard qualified custodians to safeguard assets further.

A New Financial Primitive for Crypto Investors

Timothy Chen, Global Head of Strategy at Mantle, describes MI4 as aiming to become the “S&P 500 of crypto,” providing a set-it-and-forget-it solution for institutions seeking smart beta exposure with income generation. The fund is positioned as a benchmark for crypto beta exposure combined with yield enhancement, bridging the gap between traditional finance and decentralized finance.

Carlos Domingo, Co-Founder and CEO of Securitize, emphasized the product’s flexibility and institutional-grade structure: “Through Securitize’s platform, investors will gain access to real-time liquidity, the ability to use fund shares as on-chain collateral, and seamless interoperability with DeFi. MI4 mirrors the best of traditional finance while delivering the full potential of tokenized securities.”

Phased Rollout and Ecosystem Growth

The initial rollout of MI4 is planned for Q2 2025, with future phases aimed at expanding partnerships and deeper integration within the broader digital asset ecosystem. This launch marks a significant step forward in the evolution of on-chain financial services, offering institutional investors a compliant, yield-generating crypto product with unprecedented liquidity and flexibility.