Top crypto exchange (FTX) and the largest ETP issuer in Europe (Coinshares) are forming a partnership to launch a Solana ETP.
The first product to be launched under this partnership is the physically staked Solana ETP due for listing on Xetra (a German-based finance marketplace). Coinshares will provide tech support through its Galata technology, while FTX will offer its experience in launching institutional offerings.
Why Use Solana?
Speaking on why the collaborators are choosing Solana blockchain, Jean-Marie Mognetti (Coinshares chief) explained that “Solana’s top-level features make it the most advanced layer-2 blockchain right now. Such features include scalability, speed, and transaction timestamps.”
Mognetti added that many players in the crypto industry often refer to Solana as the “financial service-oriented blockchain developed by financial technology experts. Thus, it is not surprising that the network has several use cases from the projects of traditional finance allocators.”
He also said, “the Solana network suits Coinshares’ aim of launching an ETP without losing the quality of its underlying technologies. Also, it is one reason this ETP can share 3% staking rewards annually.”
The Coinshares chief further said, “it would be a bad idea to achieve this goal without creating a way our clients can enjoy meaningful staking rewards.” “We have developed a legal solution in that respect without sacrificing daily liquidity on staking systems using non-symmetric unbinding protocols.”
Solana’s documentation states that a stake can be activated or deactivated within ten days (also known as three epochs). Non-symmetric bonding involves deactivating sufficient staked assets within specified periods so that the staked funds can have enough liquidity for redemptions.
A Few Details About The Partnership
FTX has been in the news recently for the right reasons. Before announcing this Coinshares partnership, FTX had launched FTX access three weeks ago. FTX access will offer financial-related services such as trade execution and index products for the exchange’s top investors. Part of the announcement for that launch stated that FTX access would also offer other asset management service options such as derivatives.
Speaking on their new collaboration, FTX chief executive, Sam Bankman-Fried, stated that Coinshares is the best at “institutional offerings” and “we are excited about what the future of this collaboration bodes for both companies.” However, Coinshares’ CEO refused to comment on whether the two firms plan to launch other ETPs in the near future.
Coinshares And ETP Launches
Coinshares have also had their fair share of collaborations in the crypto space. Earlier in the month, Coinshares increased its stake in the Swiss-based Flowbank. Flowbank will utilize Coinshares proprietary tech platform (Galata) to provide digital asset exposure for its investors, including other features like lending and holding.
Twelve months ago, Coinshares and scalable capital partnered up for the latter to launch its crypto offerings through Coinshares’ physically-based ETPs. Whether through collaborations or as a firm, Coinshares has launched four ETPs (including this new Solana ETP) this year, with staking rewards involved.
Two months ago, Coinshares launched ETPs for Tezos and Polkadot, with investors scheduled to receive staking rewards of 5.5% and 3.5% annually. Also, the biggest Europe-based ETP issuer launched its physically-staked Cardano ETP in Germany a few weeks ago.
