Mantle Launches $400 Million MI4 Fund With Securitize For Institutional Crypto Exposure

Mantle, a decentralized finance protocol, has launched the Mantle Index Four (MI4) fund in partnership with Securitize, a firm specializing in real-world asset tokenization. The MI4 fund is designed to provide institutional investors with exposure to major digital currencies while offering enhanced yields through integrated DeFi staking strategies. With a significant $400 million commitment, MI4 aims to serve as a key gateway for crypto investors seeking on-chain returns without the complexities of direct token management or custody.

The fund was launched in the second quarter of 2025, leveraging Securitize's tokenization expertise and Mantle’s infrastructure. This initiative seeks to bridge the gap between traditional finance and the DeFi space, allowing institutions to engage with crypto through a familiar fund setup. The fund shares offer real-time liquidity, staking yields, and can be used as collateral, marking a significant advancement in combining TradFi with decentralized finance.

MI4 employs a smart beta strategy that combines market-cap-weighted exposure with dynamic yield enhancement. The fund holds leading cryptocurrencies and stablecoins, with a quarterly rebalancing model that adapts to market conditions. This structure is designed to provide higher returns while maintaining risk-adjusted exposure to digital currencies. The fund includes staking assets like mETH, bbSOL, and sUSDe, which offer impressive yields such as mETH’s 3.78% APR. This approach effectively utilizes DeFi’s income potential within a conventional, compliant framework.

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. The fund’s design allows investors to maintain custody of their tokenized shares while accessing staking yields and on-chain interoperability, underscoring the increasing appeal of tokenized financial products.

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

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.

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. This reflects growing interest from traditional investors, supported by strong risk management practices. Furthermore, it highlights the continued evolution of tokenized investment products, which are now being developed with a growing focus on meeting the specific needs of the institutional market.

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.