Tokenized yield-bearing equities find DeFi demand
Tokenizing yield-bearing corporate equity instruments on-chain represents a growing bridge between TradFi and DeFi.
The argument
The hosts highlighted Apex tokenizing MicroStrategy's 'Stretch' product (a yield-bearing equity instrument) and deploying it on the Base L2 network, arguing that DeFi's structural hunger for yield will drive demand for these hybrid security products.
The thesis, stress-tested
✓ What validates it
- ✓Total Value Locked (TVL) growth of the tokenized Stretch product on Base
- ✓Other traditional financial institutions tokenizing similar yield-bearing equity products
▸ Risks discussed
- ▸Regulatory risks associated with wrapping and trading securities on permissionless blockchains
- ▸The underlying yield is variable and fluctuates based on corporate performance and Bitcoin strategies
Hear it yourself
"Apex is bringing Strategies stretch product, their yield bearing $100 pegged equity instrument that spits out, I think, 11% yield right now. 11.5. 11.5. Yeah. And it's putting that on base. And so we have strategy, which buys Bitcoin, puts it into its equity holdings behind MSTR Yep."
00:00 / 00:21
AFFILIATE LINK · ZORTIX MAY EARN A COMMISSION · NEVER A RECOMMENDATION TO TRADE