Swiss Firm Launches Fully Backed Cardano Staking ETP

On Thursday, March 14, Liqwid Finance, a Switzerland-based protocol, in collaboration with Issuance.Swiss AG, has officially launched a financial product named CASL, an Exchange Traded Product (ETP) that harnesses the growth and staking rewards of the ADA token from the Cardano blockchain. Listed on the SIX Swiss Exchange, CASL uniquely blends the stability of traditional finance with the novel returns of decentralized finance (DeFi).

Cardano Staking ETP Launches In Switzerland

The product is designed to not only track the performance of the ADA token, but also to capture the returns generated from staking ADA. This approach provides investors with a two-fold advantage: exposure to the price appreciation of ADA and additional staking rewards, thereby enhancing the overall return on investment.

Florian Volery, Co-founder of Liqwid Finance, explained, “CASL offers all the advantages of traditional and decentralized finance. It’s a low-cost, liquid, institutional-quality product that bridges the gap between traditional finance and the burgeoning world of digital assets.”

Volery stressed the innovative aspect of CASL, aiming to offer investors not just exposure to ADA’s market performance but also to the rewards from staking the token. This positions CASL as a pioneering product in the financial market, pushing beyond the traditional confines of crypto investment products which typically only offer exposure to asset price movements.

CASL will offer a competitive management fee of 1.5%, lower than many competing products in Europe, offering a more cost-effective option for investors. Furthermore, the ETP boasts a controlled risk profile, being fully backed by physically held ADA tokens in secure, offline storage, thus mitigating the risk of online threats. The staking of the ETP is carried out by Liqwid on the Cardano network.

Bruce Jackson, Head of Digital Assets at Apex Group, remarked on the significance of CASL for the broader finance ecosystem: “CASL simplifies investment in cryptocurrencies while promoting the decentralization of finance.” He highlighted the democratizing potential of blockchain technology, offering financial participation opportunities to millions currently outside the traditional banking system.

Johnny Sachs, a contributor to Liqwid, the first non-custodial pooled lending protocol on Cardano, stated via X yesterday, “Exciting News Alert! I’m thrilled to announce a groundbreaking development from the Swiss SIX exchange! Today, I had the honor of ringing the bell to officially launch the listing of the Cardano Staking ETP by Liqwid (Ticker: CASL).”

The CASL ETP is noted for its instant liquidity feature, allowing investors to access their funds without any lock-in periods, a stark contrast to typical on-chain staking arrangements. This aspect, combined with the involvement of Swiss entities throughout the product’s value chain, underscores the security and reliability of the investment.

Priced at $25 at launch, the ETP is also available in CHF and EUR, providing direct exposure to ADA with a valuation based on the current market price.

At press time, ADA traded at $0.70, down 13.3% in the last 24 hours.