Tuesday, December 10

Swiss Stock Exchange SIX Lists Tezos-Based ETP With ‘Baking’

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Switzerland’s main stock exchange SIX has listed a Tezos-based exchange-traded product (ETP) that enables investors to generate passive income.

Traded under the symbol AXTZ, the product is issued by fintech Amun AG in partnership with the Tezos Foundation. It went live for trading on Nov. 5.

Passive yield

According to an overview of the instrument, the ETP’s investment objective is both to provide exposure to the performance of Tezos while generating additional yield for investors through so-called “baking rewards.”

Similarly to other proof-of-stake (PoS)-based blockchains, Tezos investors are able to passively earn a form of “interest” by staking — depositing — their tokens to both maintain the network and earn rewards. 

“Baking” — a term specific to Tezos — enables stakeholders to participate in the staking and governance process by delegating their coins to a delegation service of their choice. 

Once delegated, these holdings are set in correlation with the total staking balance of the service, with rewards paid out accordingly once they have been released by the network.

According to Amun, the firm will charge a 2.5% fee on proceeds from the Amun Tezos ETP.

Underlying assets are reportedly secured and managed using Coinbase’s institution-grade Custody Platform and Amun says it holds 100% of the value of these assets in cold storage.

Reshaping the blockchain sector

This October, crypto broker Bitcoin Suisse partnered with Amun to launch a new Bitcoin (BTC) and Ether (ETH)-based ETP on the SIX exchange.

Amun AG now has a total of nine cryptocurrency ETP products listed on SIX, including an XRP-based ETP, among others. 

A recent research report from crypto exchange Binance  argued that with Ethereum’s expected switch to PoS, staking is poised to have a transformative impact on the crypto industry. 

The largest 10 crypto assets currently supporting — or due to support —  staking cumulatively represent a market capitalization of $25.8 billion, meaning that prospective staking dominance stands at roughly 10% of the total industry market capitalization.

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