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BlackRock brings Ethereum staking yield to ETFs as Mutuum Finance expands on-chain yield opportunities

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BlackRock brings Ethereum staking yield to ETFs as Mutuum Finance expands on-chain yield opportunities

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

BlackRock launches Ethereum ETF with staking rewards as DeFi platforms like Mutuum Finance expand crypto yield opportunities.

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Summary

  • DeFi yield models expand as Mutuum Finance builds Ethereum-based non-custodial lending pools.
  • Mutuum Finance lets users deposit assets for mtTokens, earning yield as borrowers pay interest.
  • MUTM is currently trading at $0.04 with 19k holders, as audits by CertiK and Halborn support its development.

BlackRock has introduced a new Ethereum investment product that combines spot ETH exposure with staking rewards, expanding institutional access to yield-generating crypto strategies. 

The firm’s iShares Staked Ethereum Trust ETF (ETHB) will trade on Nasdaq and aims to distribute staking income to investors while holding Ethereum in custody through Coinbase. As institutional products begin incorporating staking-based returns, yield generation is also expanding across decentralized finance, where platforms such as Mutuum Finance are developing on-chain lending systems designed to provide users with alternative ways to earn yield through crypto assets.

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BlackRock expands Ethereum ETF offering with staking

BlackRock has introduced the iShares Staked Ethereum Trust ETF (ETHB), a Nasdaq-listed product designed to provide investors with spot Ethereum exposure while generating income through staking. The exchange-traded product will allocate a portion of its ETH holdings to staking, allowing investors to participate in Ethereum network rewards without directly managing the staking process.

According to the company’s filing with the U.S. Securities and Exchange Commission, Coinbase will act as custodian and staking provider, while the approved validators currently include Figment, Galaxy Digital, and Attestant. Staking rewards are expected to be distributed monthly, or at least quarterly, to ETF investors. At launch, the ETF carries a 0.25% sponsor fee, which will be temporarily reduced to 0.12% for the first $2.5 billion in assets under management.

The product expands BlackRock’s existing digital asset ETF lineup, which already includes the iShares Bitcoin Trust (IBIT) and iShares Ethereum Trust (ETHA). These products have accumulated more than $55 billion and $6.5 billion in assets, respectively, making them the largest funds in their category.

BlackRock’s move follows similar developments from competitors. Grayscale Investments became the first U.S. issuer to enable staking for Ethereum ETFs in October 2025, while other asset managers such as 21Shares and REX-Osprey have also introduced or planned staking-enabled products.

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DeFi yield opportunities

As institutional products begin incorporating staking-based returns, yield generation is also expanding across decentralized finance platforms. Protocols such as Mutuum Finance are developing on-chain systems where users can earn yield by supplying digital assets to lending pools. Mutuum Finance is an Ethereum-based lending and borrowing protocol designed to provide users with non-custodial access to liquidity while generating returns from lending activity within the platform.

Within the Mutuum Finance model, users deposit assets into liquidity pools and receive mtTokens, which represent their share of the deposited funds and accumulate yield as borrowers pay interest on borrowed assets. These mtTokens can also be staked, allowing users to receive dividends in MUTM tokens, which are the native tokens of the Mutuum Finance ecosystem. The reward distribution works through a mechanism that allocates a portion of protocol-generated fees to purchase MUTM tokens from the market and distribute them to users who stake their mtTokens. This structure links lending activity within the protocol to token-based rewards for participants.

From the token side, MUTM is currently priced at $0.04, with the project reporting more than 19,000 token holders and over $20.8 million raised to date. The MUTM token smart contract has also undergone a security review by CertiK, while the lending and borrowing smart contracts were audited by Halborn prior to the launch of the protocol’s V1 on the Sepolia testnet.

Testing Mutuum Finance’s protocol

The Mutuum Finance V1 protocol is currently running on the Sepolia testnet, where users can explore the main functions of the platform’s lending and borrowing system. Since it operates in a test environment, users interact with Sepolia test tokens instead of real assets, allowing them to try the protocol’s features without using actual funds.

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At present, four crypto assets are available in the test environment: Ethereum (ETH), Chainlink (LINK), Wrapped Bitcoin (WBTC), and Tether (USDT). Users can mint test tokens, supply them to liquidity pools, borrow against collateral, and test staking functionality within the protocol.

Several core components of the system have already been implemented on the testnet, including mtTokens, debt tokens, the Stability Factor risk metric, Safe Mode Borrow Presets, and an automated liquidator bot designed to monitor positions and trigger liquidations when collateral risk exceeds safe thresholds.

A recently introduced feature, Safe Mode Borrow Presets, allows users to select predefined risk levels when opening borrowing positions. The system offers three options: Safe, Balanced, and Aggressive, each corresponding to a different Stability Factor and borrowing limit.

For example, if a user deposits $2,000 worth of ETH as collateral and the protocol allows a maximum loan-to-value (LTV) ratio of 80%, the theoretical borrowing limit would be $1,600. Using the Safe preset, the protocol may restrict borrowing to roughly $900–$1,000, maintaining a larger safety buffer against price volatility. Under the Balanced preset, borrowing could increase to approximately $1,200–$1,300, while the Aggressive preset allows borrowing closer to the upper limit, around $1,500–$1,600, depending on the selected risk parameters.

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The Mutuum Finance team regularly publishes development updates across its official social channels, including X (Twitter), Discord, and Telegram, providing information about new features and protocol improvements.

In its latest development update, the team stated that it has been working on position alert notifications, which will notify users through email, Telegram, or Discord if their Stability Factor changes or falls below a safe level. The team also noted that the next protocol feature has already been completed and is currently undergoing an internal audit, with deployment expected within the coming days.

Overall, the launch of staking-enabled Ethereum ETFs reflects growing demand for yield-generating crypto investment products at the institutional level. At the same time, decentralized platforms such as Mutuum Finance are developing on-chain alternatives that allow users to access lending-based yield and collateralized borrowing directly through smart contracts, highlighting continued expansion across both traditional crypto investment products and DeFi infrastructure.

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Disclosure: This content is provided by a third party. Neither crypto.news nor the author of this article endorses any product mentioned on this page. Users should conduct their own research before taking any action related to the company.

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Crypto World

Circle Stock Surges as Stablecoins Expand; Canaan Boosts Bitcoin Holdings

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Circle Stock Surges as Stablecoins Expand; Canaan Boosts Bitcoin Holdings

A selloff in both Wall Street and crypto markets hasn’t slowed Circle’s relentless rise. The stablecoin issuer’s stock has more than doubled since early February, with Bernstein analysts expecting further gains as stablecoins continue expanding beyond crypto’s more speculative use cases.

The technology is already moving deeper into traditional finance. UK insurance giant Aon recently piloted stablecoin payments for insurance premiums with Coinbase and Paxos, a move that could make cross-border premium payments faster and more efficient.

Elsewhere, Bitcoin (BTC) miner Canaan is taking a contrarian approach to treasury management, increasing its BTC holdings even as many competitors sell. And in traditional finance, Wells Fargo has filed a trademark for crypto-related services, suggesting large banks are still quietly preparing for deeper involvement in digital assets.

Circle stock surges on stablecoin tailwinds

Shares of stablecoin issuer Circle are rallying sharply in 2026 as Wall Street warms to the long-term growth story behind digital dollars. Analysts at Bernstein recently reiterated an “Outperform” rating on the stock, setting a $190 price target — roughly 60% above current levels.

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Circle’s stock price has already more than doubled since early February and is up roughly 49% year-to-date, outperforming both the S&P 500 index and Nasdaq 100 index during the same period.

Bernstein’s bullish outlook hinges on accelerating stablecoin adoption across payments, financial infrastructure and onchain settlement. As the issuer of USDC (USDC), the world’s second-largest US dollar-pegged stablecoin, Circle is increasingly viewed as a key beneficiary of the industry’s push into mainstream finance.

USDC’s circulation reaches nearly $79 billion. Source: DeFiLlama

Canaan boosts Bitcoin reserves while other miners sell

Bitcoin miner Canaan is expanding its BTC treasury amid a market downturn, while many rival public mining companies are reducing their holdings.

The company mined 86 BTC in February, increasing its total Bitcoin holdings to 1,793 BTC. Canaan also reported holding 3,952 Ether (ETH), bringing its total crypto reserves to record levels.

The accumulation trend stands in contrast to much of the mining sector. Several publicly traded miners have sold significant portions of their Bitcoin reserves over the past several months as tighter margins and post-halving economics put pressure on balance sheets.

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Canaan, meanwhile, continues to expand its mining footprint, including operations in Texas — one of the largest mining hubs in the United States.

Canaan’s Bitcoin holdings keep rising. Source: BitcoinTreasuries.NET

Aon pilots stablecoin payments for insurance premiums

Global insurance broker Aon is exploring the use of stablecoins to settle insurance premiums, working with crypto companies Paxos and Coinbase on the initiative.

The goal is to streamline cross-border payments, which often involve multiple banks, currency conversions and settlement delays. Stablecoins could allow insurers and clients to move funds more quickly while reducing costs and processing time.

For the insurance industry, faster settlement could simplify premium collection, improve cash flow management and reduce the administrative work tied to international payments. It may also make it easier to handle large cross-border policies and reinsurance transactions.

The pilot reflects a broader trend of stablecoins use expanding beyond crypto trading into real-world financial use cases, particularly in areas where global payments remain slow and expensive.

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Wells Fargo files trademark for crypto services 

US banking giant Wells Fargo has filed a US trademark application for “WFUSD,” signaling potential plans to expand deeper into crypto services.

The filing covers a range of blockchain-related offerings, including crypto trading, payments, digital wallet services and software for staking and custody. It also references financial services built on distributed ledger technology.

The trademark is significant because Wells Fargo is the fourth-largest US bank, with about $1.95 trillion in assets as of Q3 2025, according to S&P Global Market Intelligence.

Trademark filings don’t necessarily guarantee a product launch, but they often indicate areas companies are exploring. In this case, the scope suggests Wells Fargo may be evaluating crypto-based payments or a tokenized dollar product under the WFUSD name.

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Wells Fargo trademark application. Source: USPTO

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