Grvt and Plume Introduce Institutional-Grade Tokenized Yield Products For Retail Users

The privacy-focused wealth platform Grvt is partnering with Plume to give users the opportunity to earn yield on a diversified basket of real-world assets. 

The partnership is all about giving retail investors simplified access to institutional-grade tokenized yield on the same platform where they already trade. At launch, Grvt is offering three products, catering to different risk and reward appetites, including a Base Yield Fund for cautious investors, a Balanced Fund for those willing to accept a bit more risk and an Opportunistic Fund for those targeting bigger rewards. 

It’s the latest gambit by Grvt as it strives to position itself not as a simple crypto trading platform, but a vehicle for on-chain wealth building. Driving this shift is the idea that traders and investors shouldn’t have to keep moving their digital assets across different applications, accounts and custody layers just to take advantage of the different opportunities to be found in decentralized finance. 

One of the main advantages of Grvt’s platform is that there’s no weeding out of users due to strict onboarding requirements. That differs from many traditional brokerage platforms, which often implement strict regional restrictions that prohibit most American citizens from signing up. In many cases, the investment strategies that underpin Grvt’s Opportunistic Fund, for instance, are accessible only to institutional investors as a result of traditional platform’s excessive capital requirements. Simply put, you need to be both accredited and have multiple thousands of dollars in liquid assets to take part in the best wealth-building opportunities. This is what Grvt says it’s attempting to rectify. 

The decentralized nature of Grvt’s platform is what makes it so easy. Anyone can participate in its new tokenized RWA funds, with no need to sign up for a brokerage account and no investment minimums. It’s part of a wider push by the protocol to make tokenized financial products more composable, more akin to yield-generating building blocks. “Trading is where Grvt started and wealth is where we are expanding,” Grvt co-founder and CEO Hong Yea said. 

Making RWAs accessible

Plume plays a key role in bringing the new products to Grvt’s users. Tokenized real-world assets that live on the blockchain are nothing new, but it takes a bit of work to fit those assets nicely into properly structured and accessible investment products, and that’s where Plume’s expertise shines. Its Nest architecture simplifies the complicated algorithmic fixed income strategies associated with each of the new funds and allows them to exist on the same platform where investors can also access DeFi-native yields. In future, Grvt is planning to allow these fund assets to serve as productive collateral within its perps trading ecosystem, so traders will be able to leverage them without having to withdraw any capital first. For users, the complexity will be abstracted away, so that they can trade, earn and invest on the same platform, leveraging different assets across multiple wealth-building instruments. 

“Plume was built around the idea that real world assets should not just sit onchain as wrappers, but actually plug into how onchain markets work,” Yea added. “That is the same conviction behind Grvt’s wealth platform. We want every dollar of collateral to be productive, every yield source to be transparent, and users to never have to trade self custody for performance. 

According to Yea, Grvt’s ultimate goal is to create a truly composable wealth platform that’s compatible with the self-custody model that’s so important to DeFi users, so they can benefit from institutional-grade yields while retaining full control of their capital. 

Users who invest in the new products simply have to opt-in once to approve all current and future yield sources within Grvt’s tokenized investment products. They’ll be able to see their yield exposure any time they log in to the platform, and withdrawals will remain instant so long as market conditions remain “normal.” 

“Plume makes real world assets usable inside on-chain markets, not just visible within them,” said Plume’s Head of Strategy & Operations Ryan Wen. “We are making them a viable earning mechanism.” 

Tokenized assets have enjoyed strong momentum in the broader DeFi ecosystem of late. According to the latest data from RWA.xyz, the total value of distributed RWAs on-chain now exceeds $34 billion, spread across more than 796,000 individual asset holders. There are strong signs that this momentum is going to increase, with the U.S. SEC speculated to be preparing an “innovation exemption” on tokenized stocks, paving the way for the creation of lightly regulated, blockchain-based stocks and securities to be made available to U.S. investors.