Investing in Midas

This token functions similarly to traditional stablecoins but comes with a unique feature – it automatically shares the risk-free interest rate with its token holders. As of today, mTBILL holders can earn interest from US government debt at a rate of approximately 5.25%. Additionally, users can leverage the complete range of decentralized finance (DeFi) applications using an ERC20 token without requiring permission. This setup enables investors to maintain their capital on-chain in tokens that inherently generate yield.

In March 2022, stablecoin supply began a unprecedented decline in DeFi history, reaching $128 billion by December 2023. This reduction coincided with the Federal Reserve raising interest rates from 0% to 5%. The higher risk-free rate has shifted DeFi dynamics, prompting investors to move capital off-chain to money markets and short-term government debt. To retain on-chain capital, investors now need to earn returns matching the elevated risk-free rate on their stablecoins.

We anticipate that the incorporation of tokenized T-bills into money markets will enhance the fundamental lending rate in DeFi. This advancement will democratize access to the US risk-free rate in DeFi, making it available to anyone with internet access, regardless of their connection to the US banking system or exposure to tokenized securities. The on-chain cost of capital will now encompass the risk-free rate from the real economy, requiring an extra premium to accommodate smart contract risks.

On the DAO treasury diversification front, MakerDAO has expressed interest in transitioning its operations to tokenized T-Bills, and mTBILL is positioned to be the most competitive solution.This is based on its features of (i) permissionless secondary transfers, (ii) security, and (iii) tax efficiency, particularly the absence of withholding tax on fixed income products in Germany.

Numerous organizations have initiated the endeavor of tokenizing and dispersing fixed income funds or Treasury bills solely on public blockchains, targeting professional investors.The global market capitalization of the sector grew up from nothing in early February, to $460M+ as of today.We believe that Midas differentiates by leveraging a more friendly regulatory environment, building an optimized legal and technological setup, and of course being led by an exceptional team.

We think that the team, co-led by Dennis Dinkelmeyer and Fabrice Grinda, is world-class. Fabric is the founding partner of FJ Labs and is among the world’s leading marketplace entrepreneurs and investors with over 300 exits on over 1000 angel investments. He previously exited OLX, one of the largest online marketplaces worldwide, with over 300 million unique visitors per month. Dennis has held investment roles at Capital Group and Investment Research at Goldman Sachs.

If you are interested in becoming a distribution partner or making financial commitments before the launch, please get in touch, and we will connect you with the team.