A Pendle-compatible wrapper for a yield-bearing asset that can be split into principal and yield tokens.
Wrapping into SY, then splitting into PT and YT, is two steps that can each be an exchange under the common position. The wrap of a one-for-one yield-bearing token is commonly treated as a transfer; the split into two different tokens is commonly treated as a disposal of the SY for the PT and YT received.
Under the common position, yes, as an exchange of one asset for two different ones. Basis is allocated between them by value at the split.
Source: No IRS guidance as of September 2026; IRS Notice 2014-21 (property treatment)
Last reviewed September 18, 2026. Tax rules change; confirm current law before acting.
A confidential consultation. Tell us what you have, and we will tell you what applies and what it costs.
Hourly billing, estimated up front, with a deposit applied to the work.
Fill this out and we will reach out to schedule your consultation.
