Tesseract group (“Tesseract”), a European leader in institutional digital asset yield, lending, and investment strategies, announced it has received its MiCA license from FIN-FSA. The license grants Tesseract the ability to offer portfolio management and custody, asset transfers, investment advice, and the receiving and transmitting of client orders.
While other portfolio management licenses have been granted under the MiCA framework, Tesseract is the only one to cater to both retail and institutional clients with a specific focus on yield generation in the DeFi space. With over 20,000 retail end-users, Tesseract’s yield offering is built for scale. The capability to provide end-to-end portfolio management makes Tesseract the first MiCA-regulated entity to offer services that generate yield via active portfolio management across DeFi protocols. Under the license, Tesseract will be able to immediately onboard new clients to its Managed DeFi product.
“Being the first to offer DeFi-generated yield through active portfolio management under the MiCA framework is a proud moment for Tesseract, and a proof point of our commitment to providing robust risk management with tailored strategies for our clients,” said James Harris, Group CEO at Tesseract. “We look forward to building on our successes and expanding our institutional lending and Managed DeFi solutions to clients across Europe.”
“We see it as a positive development that crypto asset management is now brought within the scope of regulation, just like traditional asset management,” said Pia Hidén, Head of Legal & Compliance at Tesseract. “By securing MiCA approval for the services covered by our license, we are demonstrating our commitment to compliance and robust risk management, while also increasing trust and confidence among our clients. Bringing digital assets under a clear regulatory framework reassures clients that they are operating in a secure, transparent, and fully regulated environment, supporting the broader adoption of digital finance.”
Under its new MiCA license, Tesseract’s Managed DeFi product will offer a professionally managed investment solution for digital asset holders seeking exposure to DeFi opportunities without the need to navigate the complexities of DeFi protocols themselves. The product employs a diversified, multi-strategy approach that includes yield farming, liquidity provision, lending, staking, and arbitrage, optimizing returns while managing risk.
Dynamic allocation allows the portfolio to adapt to changing market conditions, and partnerships with reputable DeFi platforms ensure high standards of security and reliability. Liquidity is optimized to provide users with access to their funds when needed, even when participating in DeFi protocols that traditionally involve lock-ups. The product is actively managed by Tesseract’s team of DeFi experts, who leverage deep industry knowledge and advanced risk management techniques to optimize returns while minimizing exposure to risks associated with DeFi.
Prior to gaining MiCA approval, Tesseract had been operating as a Virtual Asset Service Provider (VASP) under the supervision of FIN-FSA. Looking ahead, Tesseract plans to broaden its product suite and is exploring opportunities to extend its regulated offering into new international markets.