Immy Dorse 
Well, here’s something you don’t see every day. A crypto outfit actually getting a full regulatory green light. Tesseract, based out of Helsinki, just secured a MiCA license from Finland’s Financial Supervisory Authority. That’s a pretty big deal, I think, for EU investors looking for some kind of managed yield service that’s actually regulated.
What does that mean in practice? Basically, the firm can now offer portfolio management, custody, and transfer services for crypto assets. And they’re opening it up to just about everyone—no minimum for regular retail users. Though if you’re a corporate treasury, you’re probably looking at starting around a million dollars.
How Tesseract’s Managed DeFi Works
So how are they generating this yield? It’s not just one thing. The product spreads investments across a bunch of DeFi strategies—yield farming, lending, staking, you name it. The team adjusts allocations based on market conditions, which sounds reasonable. They say they’re actively managing it to balance risk.
But when you ask how exactly they pick which protocols or strategies to use, things get a little vague. James Harris, the CEO, mentioned a “rigorous risk management framework” but didn’t dive into specifics. It’s all about optimizing risk and reward, apparently, with a focus on transparency. They claim over $500 million in assets under management, so they’re not exactly small-time.
The Murky World of MiCA and DeFi
MiCA itself only fully came into effect late last year. It’s supposed to bring clarity, but when it comes to DeFi, things are still pretty fuzzy. The regulation excludes “fully decentralized” services, but nobody’s really sure what that means. Is any platform with a web frontend truly decentralized? Probably not.
That ambiguity might explain why Tesseract is leaning hard into compliance. They’re doing full AML and KYC checks, which makes their offering feel more like a centralized service than a pure DeFi play. And that’s okay—maybe that’s what it takes right now to operate within the rules.
Other companies have faced tough choices. Tether, for instance, decided not to pursue MiCA compliance, which led to EU platforms delisting USDT. Meanwhile, new MiCA-friendly stablecoins like EURØP are trying to find their footing, though adoption is still low.
How Client Assets Are Protected
On the risk side, Tesseract says they’re using institutional-grade practices. They’ve got CASP registration and ISO certifications, which are supposed to signal strong data controls. Client assets are held in separate legal entities, so they’re isolated from the company’s balance sheet.
They also do credit due diligence and require collateral based on borrower ratings. On the DeFi side, they monitor allocations, run stress tests, and provide monthly reports. It sounds thorough, but then again, this is crypto—everyone says they’re thorough until something goes wrong.
Still, it’s a step. The company’s been around since 2018 and raised $25 million back in 2021 from some known names like Augmentum Fintech and Coinbase Ventures. They’re not fly-by-night. Whether this becomes a model for others… well, we’ll have to see.