SEC Registered Investment Adviser Two Prime Teams With Figment for Digital Asset Yield
Two Prime and Figment announced a strategic partnership Tuesday to provide institutional clients access to yield opportunities across Bitcoin and over 40 digital asset protocols. According to Cointelegraph, Two Prime's institutional clients will gain access to yield strategies for Bitcoin, Ethereum, Solana, Avalanche and Hyperliquid through the collaboration.
Two Prime, an SEC-registered investment adviser managing approximately $1.75 billion in assets, operates one of the industry's larger Bitcoin lending businesses. The firm partners with Figment, a staking infrastructure provider with $15 billion in assets under stake and over 1,000 institutional clients. The partnership creates integrated access for institutions seeking both Bitcoin yield strategies and staking rewards across multiple protocols.
Alexander Blume, CEO of Two Prime, stated the partnership addresses institutional demand for reliable partners supporting yield generation across multiple protocols. Lorien Gabel, CEO and Co-Founder of Figment, noted that digital asset treasuries and asset managers recognize the distinct yet complementary roles of both Proof-of-Work and Proof-of-Stake in diversified portfolios.
Growing Institutional Demand Drives Bitcoin Yield Market Expansion
The partnership reflects accelerated institutional adoption of Bitcoin yield strategies as organizations seek returns beyond price appreciation. Institutional research shows that roughly 59% of institutional investors now dedicate at least 10% of their portfolios to Bitcoin and other digital assets, representing a dramatic increase from previous years.
Bitcoin's historically non-yielding nature has limited its utility in traditional portfolio strategies. However, structured yield products mark a significant evolution in Bitcoin's role within institutional portfolios. Financial experts compare this trend to earlier Ethereum staking adoption and predict it could drive further institutional Bitcoin adoption.
Coinbase recently entered the space with its Bitcoin Yield Fund, targeting non-US investors with returns up to 8%. The exchange launched the fund to address growing institutional demand for Bitcoin yield opportunities. We previously reported that 15 US states have begun pursuing Bitcoin reserve legislation, reflecting government-level recognition of Bitcoin as a treasury asset.
The institutional shift toward yield-generating Bitcoin strategies occurs as corporations hold approximately 1.509 million BTC on balance sheets, according to industry trackers. This accumulation reflects changing perceptions of Bitcoin as a productive rather than purely speculative asset.
Market Transformation Positions Bitcoin as Institutional Treasury Tool
The Two Prime-Figment partnership arrives amid broader transformation of institutional digital asset management. Unlike traditional retail investors focused on price appreciation, institutions view Bitcoin as part of diversified portfolios where yield generation represents an expected component. This perspective drives demand for sophisticated solutions beyond simple exposure.
Market analysis indicates institutional inflows will create major demand pressures for Bitcoin throughout 2025. Every $1 billion in net inflows to Bitcoin ETFs could boost Bitcoin's price by 3-6%, according to Sygnum Bank research. Growing participation from sovereign wealth funds, pension funds, and asset managers positions Bitcoin for unprecedented institutional adoption levels.
Two Prime's lending division was recently ranked the largest centralized finance lender in the United States by Galaxy Research. This positioning reflects momentum as digital assets become central to treasury management strategies. MARA Holdings previously led a $20 million investment round in Two Prime and allocated 2,000 BTC to the firm's yield strategies.
The collaboration between Two Prime and Figment represents institutions' evolving approach to digital asset portfolios. Rather than passive holding strategies, organizations increasingly seek active management frameworks that generate returns while maintaining regulatory compliance and risk management standards. This shift toward yield-focused Bitcoin strategies may reshape how institutions integrate cryptocurrency into their broader financial operations.
