Figment Europe, a leading provider of blockchain infrastructure and services, has announced that it will partner with Apex, a Swiss-based digital asset manager, to launch two new exchange-traded products (ETPs) on the SIX Swiss Exchange. The ETPs will offer exposure to ether and Solana staking rewards, allowing investors to benefit from the growing demand for proof-of-stake (PoS) assets.
ETPs are financial instruments that track the performance of an underlying asset, such as a cryptocurrency, a commodity, or an index. ETPs can be traded on regulated exchanges, offering investors exposure to the asset without the need to hold it directly or deal with the technical complexities of custody and security.
Staking is the process of locking up a certain amount of cryptocurrency in a smart contract to participate in the consensus mechanism of a PoS blockchain network. Stakers earn rewards for validating transactions and securing the network, while also influencing its governance and direction. Staking can provide an additional source of income for ETP holders, as well as enhance the security and decentralization of the underlying blockchain.
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Ether and Solana are two of the most popular and innovative PoS blockchains, with ether transitioning from proof-of-work (PoW) to PoS in the near future. PoS blockchains reward validators for securing the network by locking up their tokens in a smart contract. This creates a passive income stream for token holders, as well as enhancing the security and scalability of the network.
Figment Europe will provide the staking infrastructure and services for the ETPs, ensuring that the underlying assets are securely stored and generating rewards. Apex will manage the ETPs, which will track the performance of ether and Solana staking indices developed by MV Index Solutions (MVIS), a regulated index provider. The ETPs will be listed on the SIX Swiss Exchange, one of the largest and most liquid stock exchanges in Europe.
The ETPs will offer investors a convenient and cost-effective way to access the staking economy, without having to deal with the technical complexities and risks of running a validator node or delegating to a third-party service provider. The ETPs will also provide diversification and exposure to two of the most promising PoS blockchains, which have seen significant growth and adoption in recent months.
Figment Europe and Apex are excited to bring these innovative products to the market, as they believe that staking is a key component of the future of finance. By offering exposure to ether and Solana staking rewards, they aim to democratize access to the staking economy and enable more investors to participate in the decentralized web.
Figment Europe will leverage its expertise and experience in staking and infrastructure to provide ETP issuers with the best-in-class staking solutions for their products. Figment Europe will handle all the technical aspects of staking, such as node operation, monitoring, maintenance, and reporting, as well as ensure compliance with the regulatory requirements of each jurisdiction.
Figment Europe will also offer educational and support services to ETP issuers and investors, to help them understand the benefits and risks of staking, as well as the specific features and nuances of each PoS protocol.
Figment Europe’s CEO, Jonathan Zerah, said: “We are excited to partner with ETP issuers to bring staking to a wider audience of investors. Staking is not only a way to earn passive income, but also a way to participate in the governance and innovation of some of the most cutting-edge blockchain projects in the industry. By providing staking infrastructure and services for ETPs, we aim to lower the barriers to entry and increase the adoption of PoS protocols, while also ensuring security, reliability, and compliance.”