Nonco and Bastion Trading complete their first trade swap transaction on CESR, the composite ether staking rate, created by CoinDesk Indices and CoinFund
AUSTIN, Texas, May 31, 2024 /PRNewswire/ — Nonco, a digital assets trading firm focused on institutions and professional investors, completed its first fixed-floating swap on the Ethereum staking rate, using CESR™, the composite ether staking rate. Bastion Trading, a systematic trading firm, structured and priced the transaction. This transaction aims to help participants to manage risk and transaction costs around Ethereum staking yields and lock in a fixed rate of return.
“Nonco is thrilled to have executed the trade with CESR, enabling institutions and professional investors to explore yield opportunities within the ETH staking ecosystem,” said Fernando Martinez, CEO at Nonco. “We are at a pivotal time in the digital assets space, and we stand at the forefront of providing access to new derivative instruments.”
“Interest rate derivatives constitute a fundamental component of the financial markets. We commend Nonco for their strategic adoption of CESR,” stated Ayush Kohli, Chief Investment Officer at Bastion Trading. “We anticipate that CESR will emerge as a pivotal benchmark for mitigating interest rate and staking yield risk as well as hedging asset-liability mismatch, particularly as the borrowing and lending markets within the digital asset sector expand.”
CESR is a benchmark rate for Ethereum staking rewards and provides participants in the Ethereum ecosystem with a standardized benchmark rate for staking and a settlement rate for derivative contracts. CESR was brought to market in 2023 by CoinFund, a leading Web3 and crypto-focused investment firm and registered investment adviser, in partnership with CoinDesk Indices, the leading provider of digital asset indices since 2014.
“In traditional finance, interest rates underpin the largest markets in the world and serve as a fundamental pillar of economic activity. Staking rates can do the same for the crypto industry,” said Chris Perkins, President of CoinFund. “By delivering a standardized benchmark to power the next generation of investment products, we can ultimately enhance stability and risk management capabilities for investors.”
“CESR has become a key piece of the digital asset puzzle,” said Alan Campbell, President of CoinDesk Indices. “We’re excited to see Nonco and Bastion leading the way and using CESR to drive innovation in crypto-based finance.”
For more on Nonco visit: https://nonco.com/
For more info on Bastion visit: https://bastiontrading.com/
For more on CESR please visit: coindeskmarkets.com/cesr
About Nonco
We are an institutional crypto trading firm with a unique approach. Our strategy integrates a risk-mitigating, noncustodial approach that leverages clearing, bilateral, and smart contract settlement capabilities.
About Bastion Trading
Established in 2014 and headquartered in Hong Kong, Bastion specializes in the trading and investment of digital assets across leading cryptocurrency and traditional exchanges worldwide. With a progressive expansion over the years, Bastion has diversified its portfolio to encompass a comprehensive range of financial instruments and strategies, including options and derivatives market making. Bastion’s operations also extend into Decentralized Finance (DeFi) and the deployment of high-frequency, systematic trading strategies.
About CoinDesk Indices
Since 2014, CoinDesk Indices has been at the forefront of the digital asset revolution, empowering investors globally. A subsidiary of Bullish, our indices form the foundation of the world’s largest digital asset products. Known for their precision and compliance, flagships such as the CoinDesk Bitcoin Price Index (XBX) and the CoinDesk 20 Index set the industry standard for measuring, trading, and investing in digital assets. With tens of billions of dollars in benchmarked assets, CoinDesk Indices is a trusted partner. Discover more at coindeskmarkets.com.
About CoinFund
CoinFund is one of the world’s first cryptonative investment firms and a registered investment adviser founded in 2015. The firm champions the leaders of the new internet, powered by foresight as active investors to achieve extraordinary outcomes. CoinFund invests in seed, venture, and liquid opportunities within the blockchain sector with a focus on digital assets, decentralization technologies, and key enabling infrastructure. For more information, visit CoinFund.io, LinkedIn or join us on X.
Disclaimer
CoinDesk is a portfolio company of the Bullish group. CoinDesk Indices, Inc. (“CDI”) does not sponsor, endorse, sell, promote or manage any investment offered by any third party that seeks to provide an investment return based on the performance of any index. CDI is neither an investment adviser nor a commodity trading advisor and makes no representation regarding the advisability of making an investment linked to any CDI index. CDI does not act as a fiduciary. A decision to invest in any asset linked to a CDI index should not be made in reliance on any of the statements set forth in this document or elsewhere by CDI. All content contained or used in any CDI index (the “Content”) is owned by CDI and/or its third-party data providers and licensors, unless stated otherwise by CDI. CDI does not guarantee the accuracy, completeness, timeliness, adequacy, validity or availability of any of the Content. CDI is not responsible for any errors or omissions, regardless of the cause, in the results obtained from the use of any of the Content. CDI does not assume any obligation to update the Content following publication in any form or format. © 2024 CoinDesk Indices, Inc. All rights reserved.
CoinFund Management, LLC (“CoinFund”) is an SEC registered investment adviser pursuant to the Investment Advisers Act of 1940, as amended. This registration as an investment adviser does not imply a certain level of skill or training. CoinFund does not sponsor, endorse, sell, promote or manage any investment or products offered by any third party that seeks to provide an investment return based on the performance of any index. CoinFund makes no representation regarding the advisability of making an investment linked to any index offered by any third party. No representation is made and no warranty is given, expressed or implied as to the accuracy of the information contained in this document and it represents neither an offer to sell nor a solicitation of an offer to buy any securities. CoinFund does not guarantee the accuracy, completeness, timeliness, adequacy, validity or availability of any of the information contained in this document nor is CoinFund responsible for any errors or omissions, regardless of the cause, in the results obtained from the use of any of the index, including those which utilize CESR. The information, views and opinions expressed herein are based on matters as they exist as of the date of preparation of this document and not as of any future date, and will not be updated or otherwise revised to reflect information that subsequently becomes available or changes occurring after the date hereof.
Nonco is a BVI entity, the information provided herein of the products or services is for informational purposes only and do not represent a recommendation, commitment, promise, solicitation or offer to sell, nor a solicitation of an offer to buy any security. Described products/services do not constitute professional advice, investment advice or trading advice, to that end, this communication should not be construed as an invitation or inducement to engage in any investment activity; this document is not tailored to specific circumstances, jurisdictions and should not be relied upon for making investment decisions. Nonco makes no guarantees or assurances regarding suitability or performance of the products/services, Nonco is not responsible for any errors or omissions, regardless of the cause, in the results obtained from the use of any of the content. Nonco is neither an investment adviser nor a commodity trading advisor and makes no representation regarding the accuracy, completeness, reliability, timeliness, adequacy, validity or availability of the information contained in this communication. The data, statements, opinions in this document are based on the circumstances as they were at the time of its creation and they are not intended to reflect future developments.
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