Coinbase Asset Management (CBAM) has launched a tokenized share class of its Bitcoin Yield Fund on Base, Coinbase's Ethereum Layer 2 network, marking another institutional step toward onchain fund distribution.

The launch was announced in partnership with Apex Group, a global fund services provider overseeing more than $3.5 trillion in assets. Apex serves as transfer agent for the fund, keeping book-entry records aligned with the fund's net asset value while enabling blockchain-native distribution.

The tokenized share class uses the ERC-3643 permissioned token standard, which embeds investor compliance rules directly into the smart contract. Only verified and approved wallets can hold or transfer the digital shares, replacing manual compliance checks with automated onchain enforcement. Investor onboarding runs through CBAM's investor portal powered by Apex's Tokeny platform.

The Bitcoin Yield Fund generates returns by selling call options and participating in lending arrangements — meaning holders earn yield on top of bitcoin price exposure, rather than simply holding spot BTC.

The tokenized share class opens a more efficient distribution channel for non-US institutional investors. Brett Tejpaul, head of Coinbase Institutional, noted that new capital increasingly wants compound returns, not just price appreciation.

Apex, which acquired Tokeny last year, plans to tokenize $100 billion in funds using its T-REX Ledger by June 2027. The ERC-3643 standard was also recently cited by SEC Chair Paul Atkins as a preferred compliance-embedded framework for digital assets, giving the approach added regulatory tailwind.