Base Blockchain Hosts Tokenized Bitcoin Yield Fund from Coinbase and Apex Group
Anthony Bassili from Coinbase Asset Management explains that the tokenized share class of the Bitcoin Yield Fund incorporates "identity and eligibility at the token level" to ensure regulatory compliance.
In collaboration with financial services provider Apex Group, Coinbase has introduced its Bitcoin Yield Fund to the Base blockchain through the launch of a tokenized share class for the investment product.
In a Thursday announcement, Apex stated that Coinbase Asset Management's fund's tokenized share class "is set up to interact with compatible platforms, wallets, and infrastructure without compromising compliance."
Anthony Bassili, president of Coinbase Asset Management, explained that the share class incorporates "identity and eligibility at the token level" to maintain regulatory compliance.
The financial services industry has been increasingly moving toward tokenizing various assets including stocks, bonds, funds, commodities and real estate properties on blockchain networks, driven by the pursuit of reduced operational costs, accelerated settlement times and continuous trading capabilities.
Major asset management firms such as BlackRock, Fidelity Investments and Franklin Templeton have previously introduced their own tokenized fund products on blockchain networks.
Apex enables institutions to access ERC‑3643 tokens
The tokenized share class for Coinbase's fund, which provides exposure to both Bitcoin (BTC) and yield generation opportunities, will be accessible exclusively on Base to institutional and accredited investors located outside of the US.
The share class leverages the ERC‑3643 permissioned token standard to guarantee that only eligible investors can access the Bitcoin yield product.
A tokenized share class of the Coinbase Bitcoin Yield Fund designed specifically for US investors is planned for launch at a later date, according to Coinbase.
As the on-chain transfer agent for the tokenized Coinbase Bitcoin Yield Fund, Apex is responsible for managing token ownership, implementing compliance and transfer regulations, and keeping a comprehensive record of all transactions occurring on the Base blockchain.
The non-US version of the Coinbase Bitcoin Yield Fund was introduced by Coinbase in April, followed by the launch of a US version in October.
The non-US version aims to achieve an annual return ranging from 4% to 8% denominated in Bitcoin. When launching the product, Coinbase stated that it was developed to solve Bitcoin's lack of native yield generation capabilities, which differs from proof-of-stake assets such as Ether (ETH) and Solana (SOL).