B2C2 Offers Regulated Dual Digital Asset Instrument
Posted by Colin Lambert. Last updated: May 3, 2022
Digital assets trading firm B2C2 has unveiled a dual digital asset instrument (DDAI) that provides counterparties with a product that offers decentralised finance (defi)-like yields in a regulated centralised finance (cefi) environment.
The new products will initially be rolled out with one of the largest retail brokerages in Japan, and provided to their end-clients under the authorisation of the Financial Services Agency in Japan (JFSA). B2C2 says it will make the product available to a broad array of brokers, banks, asset managers, insurance companies, wealth managers and family offices across APAC, EMEA and the Americas.
The firm says DDAIs mark a step change in investors’ ability to diversify income streams through digital products that sit firmly within the regulatory perimeter. While digital asset investors have relied primarily on price appreciation for income growth to-date, or else yield products in the defi arena, they will now be able to access a regulated product that offers enhanced yield on their holdings.
The short-dated instrument (ranging from one-week to one-month), which is widely used in the FX markets, joins a growing family of OTC products now available in the digital asset class – such as non-deliverable forward (NDFs).
“This innovative product offers a unique regulated solution which we believe will see huge uptake and unlock billions of dollars of yield, further cementing B2C2’s position as the institutional partner of choice,” says Phillip Gillespie, co-CEO of B2C2. “Importantly, it will challenge unregulated alternatives by offering investors seeking yield products a safer and more efficient alternative.”