The top stock exchange in Switzerland now has an exchange-traded product (ETP) underpinned by BNB, the exchange token of Malta-based cryptocurrency exchange giant Binance.
Announced by Binance and launched for trading on SIX Swiss Exchange on October 15th, the Amun Binance BNB ETP will be fully collateralized by $20 million USD worth of BNB tokens. An ETP is a type of security that is benchmarked to the value of an index or an asset, like commodities.
The new ETP, a first for BNB and investors alike, came as the result of a partnership between Binance and Swiss fintech startup Amun AG. The Swiss firm has already made a name for itself in the cryptoeconomy for having launched 7 previous cryptocurrency ETPs on SIX Swiss Exchange, one of which was HODL — the first ever publicly traded crypto index.
Notably, Amun’s stable of crypto ETPs are collectively backed by $75 million in assets under management, of which more than 26 percent is comprised of the Binance Coin backing the new ETP — a sum of more than 1 million BNB.
According to Binance founder and chief executive officer Changpeng Zhao, the Amun partnership will bring a boon to the BNB ecosystem and the cryptoeconomy alike in offering mainstream investors greater exposure to their potential:
“Our partnership with Amun in launching the BNB ETP will provide investors with a new and regulated asset class with a unique dimension to utility tokens, making them more accessible and reliable through a traditional financial infrastructure. This will provide traditional investors access with diversified exposure and segue into the global cryptocurrency market and its innovative products.”
So, while Binance will remain steadfast in its position that BNB is a utility token and not a security, the Amun Binance BNB ETP will be a security and appeals to investors who are more comfortable with mainstream financial instruments rather than directly holding cryptocurrency.
A Growing Stable
As mentioned earlier, the BNB product is only the latest crypto ETP to be rolled out by Amun.
Of its single-asset ETPs, the Swiss firm has already launched the Amun Bitcoin ETP (ABTC), the Amun Ethereum ETP (AETH), the Amun Ripple XRP ETP (AXRP), the Amun Bitcoin Cash ETP (ABCH), and now the BNB ETP (ABNB).
As for its index products, Amun also manages the HODL, KEYS, and ABBA indices, all of which respectively track different assortments of top cryptocurrencies.
If the Zurich-based Swiss firm keeps this pace up, it will launch more crypto and crypto indice ETPs yet before other companies can even list their firsts on stock exchanges in other major countries.
SIX Has Bigger Crypto Plans
SIX Group, the operators of SIX Swiss Exchange, has bigger cryptocurrency ambitions than just listing Amun’s ETPs.
For example, the consortium of more than 50 Swiss banks is planning to release the SIX Digital Exchange (SDX) as early as the first quarter of 2020. Built atop the R3’s Corda platform, the venue is set to facilitate trading of cryptocurrencies and digital securities.
And even though SDX will be powered by Corda, Swiss security token startup BlockState is using Ethereum smart contracts to “mirror” a handful of Ethereum ERC20 tokens to the platform.
Moreover, SIX Group also made waves in the cryptoeconomy this past summer when it asked Switzerland’s central bank to consider directly backing a Swiss franc (CHF) stablecoin that could be used by SDX traders. As a SIX spokesperson explained at the time:
“SDX member banks will be able to settle their trades and other obligations against tokenised CHF within SDX once we are up and running. To facilitate this, SDX would accept CHF payments from member banks in central bank money and issue equivalent tokenised CHF in SDX.”