Mantle Moves Stablecoin Yield Vault Into DeFi Model After Hitting $200M in Deposits

Mantle has shifted its stablecoin yield vault from a centralized custody setup to a noncustodial decentralized finance framework, following the product reaching $200 million in deposited assets, according to crypto.news and The Cryptonomist. The vault sits within Mantle's real-world asset (RWA) yield lineup, which aims to offer stablecoin holders returns linked to offchain instruments such as government bonds and other yield-bearing assets. Under the prior structure, yield was generated through a CeFi arrangement in which a centralized party held the underlying assets on users' behalf. By moving to a noncustodial model, Mantle is positioning the product so users retain direct control of their funds, with smart contracts handling deposits, yield distribution, and withdrawals rather than a centralized custodian. The shift highlights a long-standing fault line in onchain yield products: counterparty reliance in CeFi versus code and smart-contract risk in DeFi. The $200 million mark appears to have been the catalyst for the transition. The scale signals rising demand for yield-bearing stablecoin products on Mantle, and the move may be intended to reduce counterparty exposure as assets under management grow. Mantle operates as an Ethereum-based layer-2 network competing with other chains targeting RWA issuers and stablecoin projects. The broader RWA segment has continued to expand as both institutions and crypto-native platforms push tokenized treasuries and similar products as a way to deliver returns without relying solely on crypto market beta. Neither crypto.news nor The Cryptonomist provided technical details on the new noncustodial implementation, including the smart-contract framework, audit coverage, yield sources, or any changes to fees. Market impact: A noncustodial design may appeal to users focused on self-custody and lower counterparty risk, and could strengthen Mantle's positioning against other layer-2 networks and DeFi protocols offering comparable RWA yield products. With $200 million already deposited under the former CeFi structure, market attention will likely center on whether capital remains in place and whether inflows accelerate under the new model. FAQ - What changed with Mantle's stablecoin vault? Reports say it moved from CeFi custody to a noncustodial DeFi structure. - Why does the $200 million milestone matter? The timing suggests the transition was tied to the vault reaching larger scale. - What's the difference between CeFi and DeFi custody? CeFi relies on a centralized custodian holding assets; noncustodial DeFi uses smart contracts, with users retaining direct control. - What are RWA yield products? They offer token holders returns linked to offchain assets, such as bonds, brought onchain through tokenization. Originally reported by AltcoinGordon; written by Sophia Bennett. Republished with permission. View the original on AltcoinGordon →