Mantle Launches $400M MI4 Fund for Institutional Crypto Exposure and DeFi Staking Yields

Securitize, a prominent firm in real-world asset tokenization, has partnered with the decentralized finance protocol Mantle to launch a notable institutional crypto index fund. The Mantle fund, named Mantle Index Four (MI4), offers exposure to major digital currencies while also delivering enhanced yields through integrated DeFi staking strategies. Mantle launched the initiative with a significant $400 million commitment, positioning MI4 as a key gateway for crypto investors seeking on-chain returns. This structure allows institutions to access such returns without the complexities of direct token management or custody.

Securitize launched the fund in the second quarter of 2025 using its tokenization expertise and Mantle’s infrastructure. This venture aims to establish a close connection between traditional finance and the DeFi space. It allows institutions to engage with crypto through a familiar fund setup while gaining access to real-time liquidity and staking yields. Fund shares also offer flexible use as collateral, marking a significant advance in combining TradFi with decentralized finance.

What Smart Beta Strategy Is Behind the Mantle Fund?

MI4’s core appeal lies in its smart beta strategy. The fund employs this strategy, which combines market-cap-weighted exposure with dynamic yield enhancement. This crypto index fund holds both leading cryptocurrencies and stablecoins. What sets MI4 apart is its quarterly rebalancing model, which adapts to market conditions while integrating staking assets like mETH, bbSOL, and sUSDe. This creates a structure designed for higher returns while maintaining risk-adjusted exposure to digital currencies.

Timothy Chen, Mantle’s Global Head of Strategy, described MI4 as “a set-it-and-forget-it solution” for institutions that prefer to avoid the complexities of technical token management. This product offers a straightforward path to crypto investment, focusing on simplicity, transparency, and maximizing yield potential. With impressive staking yields such as mETH’s 3.78% APR, the fund’s approach effectively utilizes DeFi’s income potential within a conventional, compliant framework.

How Does Securitize Power the Mantle Fund?

Securitize makes a significant contribution to the Mantle fund’s operational model through its robust tokenization platform. Investors receive tokenized versions of their fund shares, transferable according to private placement rules and compliant transfer regulations. These digital securities can be held in decentralized wallets and moved on-chain and can serve as collateral on participating exchanges. This system boosts liquidity and utility, representing a notable improvement over traditional fund share ownership methods.

We’re pleased to announce the launch of the Mantle Index Four (MI4) Fund—a new institutional-grade crypto product developed in partnership with @Mantle_Official and backed by a $400M anchor investment from Mantle Treasury.

MI4 is designed to become the de facto SPX or S&P 500 of… pic.twitter.com/rNLuIaaPhH

— Securitize (@Securitize) April 24, 2025

Carlos Domingo, Co-Founder and CEO of Securitize, highlighted MI4’s transformative potential for finance. “That level of flexibility … creates a product that mirrors the best of traditional finance while delivering the full potential of tokenized securities,” Domingo stated. Through MI4, investors can maintain custody of their tokenized shares while accessing staking yields and on-chain interoperability. This capability underscores the increasing appeal of tokenized financial products. MI4 represents a substantial step forward for institutional engagement with crypto as tokenized assets continue to grow on-chain.

Why is the Mantle Fund a Milestone for Institutional Crypto?

The Mantle fund, MI4, addresses persistent challenges in institutional investing in crypto, primarily concerning custody, yield generation, and regulatory compliance. By integrating staking strategies with risk-managed asset distribution, this fund provides income-generating exposure in a risk-aware format. This approach meets the growing institutional demand for yield without requiring organizations to go into the technical complexities of decentralized finance.

Mantle’s $400 million investment makes MI4 the largest tokenized institutional fund, significantly exceeding the previous record held by Securitize’s $148 million BCAP fund. This reflects growing interest from traditional investors, supported by strong risk management practices. Furthermore, it highlights the continued evolution of tokenized investment products. These are now being developed with a growing focus on meeting the specific needs of the institutional market.

What’s The Road Ahead for Tokenized Funds?

As tokenization continues to reshape the financial sector, MI4 offers a potential model for future institutional crypto products. Its launch is well-timed, arriving as market uncertainty drives both retail and institutional interest in alternative assets like cryptocurrencies. Backed by two leading platforms, the fund demonstrates the viability of DeFi staking options within established structures.

MI4’s broader significance reaches beyond the fund itself, potentially setting a new standard for upcoming digital asset offerings. The partnership between Securitize and Mantle successfully combines easy access, institutional-level compliance, and innovative yield strategies. As more institutions explore on-chain capital deployment, MI4 is well-positioned as a possible benchmark within the quickly evolving tokenized finance arena.

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