Securitize Partners with Mantle to Launch a New 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.

Securitize, a prominent firm specializing in real-world asset tokenization, has partnered with decentralized finance protocol Mantle to launch a noteworthy institutional crypto index fund.

This fund, known as 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, rendering MI4 a key gateway for crypto investors seeking optimal 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, leveraging its tokenization expertise and Mantle’s infrastructure. This venture aims to forge a close connection between traditional finance and the DeFi space. It enables institutions to engage with crypto through a familiar fund setup, simultaneously 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?

The fund, known as Mantle Index Four (MI4), is designed to be a flagship product offering a seamless entry point for institutions seeking exposure to the crypto market. It combines market-cap-weighted exposure with dynamic yield enhancement through a smart beta strategy.

The crypto index fund holds a selection of leading cryptocurrencies and stablecoins. It is rebalanced on a quarterly basis to adapt to changing market conditions and currently includes staking assets such as mETH, bbSOL, and sUSDe. This structure is designed to generate 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 technical complexities of managing tokens themselves.

“This product provides a simple way for institutions to invest in crypto, focusing on providing maximum yield potential in a manner that prioritizes simplicity, transparency, and regulatory compliance.”

Considering the impressive staking yields available, 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 contributes to the fund’s operational model with its robust tokenization platform. Investors receive tokenized versions of their fund shares, transferable according to private placement rules and compliant with relevant transfer regulations.

These digital securities can be held in decentralized wallets and moved on-chain, and they are designed to be usable as collateral on participating exchanges. This system boosts liquidity and utility, presenting a marked improvement over traditional fund share ownership methods.

“We believe that institutions will prefer to hold a single token that offers both liquidity and the ability to use it as collateral if they wish,” said Carlos Domingo, Co-Founder and CEO of Securitize.

Highlighting the product's potential, Domingo added, “This level of flexibility—liquidity, divisibility, and the ability to use the token as collateral—really creates a product that mirrors the best of traditional finance while delivering the full potential of tokenized securities.”

Through MI4, investors can maintain custody of their tokenized shares and access both the liquidity of a centralized exchange and the staking yields and interoperability of Web3. This capability is a key factor in the increasing appeal of tokenized financial products.

With this initiative, Mantle is taking a substantial step forward in facilitating broader institutional engagement with crypto as tokenized assets continue to grow within the on-chain ecosystem.

Why Is the Mantle Fund A Milestone For Institutional Crypto?

The Mantle fund, known as MI4, addresses persistent challenges faced by institutions investing in crypto, mainly concerning custody, yield generation, and regulatory compliance.

By integrating staking strategies with risk-managed asset distribution, this fund provides institutions with a means to generate income-generating exposure in a format they can readily manage. This approach serves 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 record reflects the burgeoning interest from traditional investors, fueled by strong risk management practices and reporting capabilities.

Moreover, it highlights the ongoing evolution of tokenized investment products, which are increasingly being developed with a view toward 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 showcases the viability of DeFi staking options within established structures. It will be interesting to observe how this initiative unfolds and contributes to