CRYPTO NEWS
Cryptos: Kraken to launch structured products Crypto exchange Kraken is planning to roll out structured products in its platform to provide a staking yield for institutional investors.
Kraken’s plan to launch structured products has been in the works for some time and was triggered following the acquisition last year of Staked, a staking company operating in the crypto market. The firm wants to combine the trading services offered by its crypto exchange platform and the staking power of the new firm to offer more services to institutional investors. According to Tim Ogilvie, head of Staked at Kraken Ogilvie, the new structured products will use staking of futures to achieve certain objectives and will comprise products known internally as cash, carry, and stake.
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www.structuredretailproducts.com
‘This strategy is already familiar to sophisticated and institutional investors,’ said Ogilvie. ‘The strategy allows investors to stake to gain rewards generated by the act while reducing the risk of exposure to the underlying asset at the same time. You basically eliminate the underlying currency risk to allow you to get just a yield.’ The process also offers short-term returns when the investor goes short on an underlying asset, allowing the investor to gain from funding rates. Investors seeking to invest in the new products will be required to follow the know-yourcustomer (KYC) and AML procedures before they are given access.
