What is the rational for Crypto Notes?
Crypto assets are nowadays commonly used by an investor, a trust, a family or a promoter in their asset allocation. While these assets are part of the universe of investments they may be circumstances where investors wishes to a ‘classic’ debt security rather than holding the crypto assets in direct.
Some Promoters are issuing product (‘Crypto Notes’) to give access to their investors to tranche of a largest investment/crypto asset such as STO or offer via the note the income and yield linked to “staking”.
Others are using those Crypto Notes as a structure of investment into a specific assets and create an index which is linked to a basket of crypto asset.
Asset managers may place crypto asset into such SPV to let investor sharing the ownership of such crypto assets, create an investment solution for investor by virtue of which they receive one single Crypto Note which underlying assets are a basket of crypto assets or share
the risks linked the future cash flow linked to a specific combination
of investment into crypto assets.