- LeadBlock Partners has set up LeadBlock Labs, its innovation hub, where we experiment, educate and partner to propel the future of blockchain.
- LeadBlock Labs is now launching a new initiative with Morpho and Midas by becoming the risk curator of a USDC Real-World Asset (RWA) backed Morpho Vault
- The vault enables access to real world asset driven yields which are uncorrelated to crypto market conditions
- The ultimate objective is to create utility and integrate RWA in DeFi as it is a key step to drive adoption and ultimately bring all traded assets on blockchains
LeadBlock Partners has been driving blockchain adoption since 2019 notably through venture capital investments but also through efforts to educate relevant parties such as companies, financial institutions, regulators, politicians etc. as well as efforts to build bridges between these constituencies and the blockchain ecosystem.
LeadBlock Labs, our innovation hub, is where we experiment, educate and partner to propel the future of blockchain. Within Labs we are launching a new initiative to drive further integration of Real World Assets into DeFi. We have been strong advocates for institutional adoption of DeFi as a key driver of adoption and continue to play our part in realising this vision.
LeadBlock is now the risk curator of a USDC vault on Morpho which will lend to borrowers who post RWAs as collateral. The vault will take advantage of the growing asset base of onchain RWA which are issued by start-ups and financial institutions. It will enable access to expertly selected real world asset driven yields, capture incentives from RWA issuers and enable leverage strategies on RWAs.
The vault’s ultimate objective is to create utility and embed RWA within DeFi as it is a key step to drive adoption and ultimately bring all traded assets on blockchain rails.
Real world assets are a fast-growing asset class on-chain. AUM was very low in early 2023 with only a single active player. AUM has now reached more than $800mn mainly in tokenised T-bills issued by a diverse pool of players which includes start-ups and financial institutions.
We see accelerating competition, innovation, new entrants, and appetite to fund RWA projects. This will drive further AUM growth through 2024 and beyond. We also note growing activity by financial institutions for natively issued on chain RWAs which could be supported by the vault.
RWA Vision
Our vision is that blockchain and DeFi will be adopted by institutions and serve as the new financial market rails. We see proof and progress being made on that front both from within financial institutions and thanks to initiatives from startups.
Existing financial market infrastructure is outdated, slow and costly, leading financial institutions to see blockchain’s potential to underpin future financial market infrastructure, namely tokenisation.
About the Morpho Vault
LeadBlock acts as the risk curator of the USDC RWA Morpho vault that will lend against a selection of RWAs. Lenders can select the vault and supply liquidity to earn yield through Morpho Blue which is a decentralized immutable protocol which enables overcollateralized lending and borrowing of any digital asset. It distinguishes itself notably through the simplicity of its code, low gas fees, and self-adjusting yield curve which adapts to market conditions.
At launch the pool will lend against tokenized T-bills in the form of the mTBILL token. The mTBILL token is backed 1:1 by short-dated U.S. Treasury securities via an ultra-liquid BlackRock Treasury Bond ETF (iShares $ Treasury Bond 0-1yr UCITS ETF) which has a total AUM of $13bn. The token is issued by Midas and holders are free to redeem mTBILL for the net asset value of the underlying at any time.
Disclaimer – Please Read
LeadBlock only acts as risk curator of the vault. Your only rights and remedies as a vault user will be those included in Morpho’s Terms of Use. Please read below:
Please refer to Morpho Terms of Use here
Please also refer to LeadBlock disclaimers here
