DeFi Technologies Inc. (the “Company” or “DeFi Technologies”) (CBOE CA: DEFI) (GR: R9B) (OTC: DEFTF), a financial technology company that pioneers the convergence of traditional capital markets with the world of decentralised finance (“DeFi”), is thrilled to announce the introduction by its subsidiary, Valour Inc., and Valour Digital Securities Limited (together, “Valour”), a leading issuer of exchange traded products (“ETPs“), of its groundbreaking asset-backed Ethereum exchange traded products also known as exchange traded notes (“ETNs”) on the London Stock Exchange (the “LSE”).

The Valour Ethereum Physical Staking ETP (Ticker: 1VET, ISIN: GB00BRBMZ190) is a fully backed, non-leveraged, passive investment product providing direct exposure to Ethereum (“ETH”) as the underlying crypto asset. The ETP is secured by the respective cryptocurrency held in cold storage by regulated crypto custodians.

“We are thrilled to introduce our innovative, physically-backed Ethereum Staking ETP on the London Stock Exchange, marking a significant milestone for Valour and the UK market. This product provides professional investors with secure and regulated access to Ethereum and offers the unique benefit of staking rewards, maximizing potential returns. Our Ethereum Staking ETP showcases Valour’s commitment to pioneering cutting-edge financial products that bridge traditional finance with the world of digital assets, enabling institutional and professional investors in the United Kingdom to gain exposure through their traditional investment accounts”, said Olivier Roussy Newton, CEO of DeFi Technologies.

Elaine Buehler, Head of Product at Valour, further notes: “This product represents a crucial step forward in connecting traditional finance with digital assets. By offering the benefits of staking through an exchange-traded product, we’re simplifying access to Ethereum for institutional investors, allowing them to participate in the growing decentralized finance space without the technical hurdles.”

The Valour prospectus has received approval from the Financial Conduct Authority (“FCA”) and the London Stock Exchange (“LSE”). Early this year, the FCA announced it would not oppose applications from financial institutions wishing to list ETPs aimed at professional investors. The LSE said it will begin accepting applications for Bitcoin (“BTC”) and ETH products in the second quarter of 2024. However, the FCA has stipulated that these London-based ETPs be restricted to professional investors only.

The launch follows the LSE’s guidance allowing admission of certain crypto ETPs that meet specific criteria, including being physically backed, having reliable pricing sources, and being custodians regulated in approved jurisdictions.

Valour Ethereum Physical Staking Features:

• Listed on the LSE, offering the unique advantage of staking rewards.
• Physically-backed, non-leveraged exposure to ETH.
• The underlying crypto assets are held in cold storage by regulated custodians.
• Trading is restricted to professional and institutional investors only.
• Competitive management fees.
  

With a fixed yield, no defined expiry, and a 1.49% management fee, investors can earn passive returns while avoiding the technical complexities of staking. Through investing in the Valour Ethereum Physical Staking ETP, investors also actively contribute to the evolving DeFi landscape. Enhanced security features, such as slashing insurance and full collateralization, provide investors with additional transparency and protection.

Crypto staking is a fundamental component of blockchain dynamics, allowing participants to engage in the governance and consensus of Proof of Stake (PoS) blockchains while earning rewards for their contributions. Unlike Proof-of-Work systems, PoS networks rely on validators who pledge assets to validate and create new blocks.

Partnering with institutional entities like Copper Markets (Switzerland) AG for custody and industry stalwart Blockdaemon for staking services, Valour offers a consistently collateralized, non-custodial staking environment.

This approval in the UK comes after the U.S. greenlit spot Bitcoin exchange-traded funds, a development that builds on several years of similar products being traded across various European countries. The products are available for trading on the LSE’s dedicated “Professional Investors Only” segments effective today. While retail investor access remains restricted, the listing represents a significant development for institutional crypto adoption in the UK.