Oasis Foundation to provide $5 million grant to bring Midas' compliant tokenized treasury fund to Sapphire chain

The Oasis Foundation is committing a $5 million grant so that real-world asset startup Midas can launch its yield-bearing mTBILL token on the Oasis Sapphire Network. The move will further expand access to one of the few onchain, regulated products available to non-accredited investors in Europe. 

In addition, the Oasis and Midas tie-up will help set “confidentiality features” for mTBILL — expanding privacy options for the tokenized U.S. Treasuries product.

“Deploying mTBILL on Oasis Sapphire represents an exciting opportunity for Midas to pioneer in one of the most innovative and privacy-focused ecosystems in crypto,” Midas CEO Dennis Dinkelmeyer told The Block in a direct message.

Oasis is an Ethereum-capatable Layer 1 focused on transactional privacy. It uses a “layered architecture” to increase bandwidth and reduce fees, the startup said in a statement. 

“Sapphire’s confidential EVM capabilities align perfectly with our mission to provide secure, transparent, and composable tokenized solutions,” Dinkelmeyer added.

The funding will come in a “phased grant” to Midas allowing for a “gradual and secure integration” of the mTBILL on Oasis’ network, where it will be available to all Oasis users without a minimum investment. 

In October, Midas received regulatory approval from Liechtenstein's Financial Market Authority to offer two tokenized products without the standard minimum investment of $100,000.

Besides the aforementioned mTBILL token, Midas’s second real-world asset product is an onchain yield-bearing stablecoin called mBASIS that maintains its peg using a carry trade similar to Ethena. 

(A basis trade in crypto capitalizes on the difference between an asset’s price in future and spot markets. When prices are rising, traders deploy into futures markets helping to drive prices above spot levels and creating “a positive basis.”)

According to the startup’s most recent data, mBASIS’ delta neutral strategy — which has benefited from the post-election market rally — has seen 33% year-to-date returns, making it one of the most performant stablecoins in the market. 

Midas raised $8.75 million in a round led by Framework Ventures with backing from investors including BlockTower and The Block’s Director of Special Events Frank Chaparro.