STOKR Supports the Launch of a Tokenized High-Yield Investment Fund to Pave the Way for Large Investments in the Stablecoin Lending Space

Luxembourg, December 16th, 2021

The EU’s pioneering digital marketplace for alternative assets STOKR supports on its platform a high-yield fund that addresses the imbalance between borrowing and lending rates in the $100 billion stablecoin market. 

STOKR, the EU’s pioneering digital marketplace for alternative assets, today announced that it is supporting the newly launched Aquarius Alternative High Yield Debt Fund, a stablecoin fund targeted at large investors looking to safely deploy capital in the cryptocurrency lending space, on its platform. The fund is launched by Luxembourg-based SICOS Securities.

The tokenized fund capitalizes on the growing imbalance between borrowing and lending rates in the USD 100 billion stablecoin market: lending has enjoyed increased popularity in the cryptocurrency space in recent years, yet the demand to borrow stablecoins starkly outweighs the supply of stablecoins made available to borrowers. Investors in the new fund can use this imbalance to their advantage by tapping into the favorable rates for lenders.

While lending is one of the main appeals of the decentralized finance (DeFi) space, the majority of DeFi solutions remain largely complicated for professional investors as they tend to be user-unfriendly and highly technical; security concerns pose another challenge for many such investors. Via its Luxembourg fund structures, the tokenized fund enables a highly convenient investment process that relieves investors from the complexities of negotiating with various digital asset companies, digital assets exchanges, and lending liquidity.

The fund units will be issued on Algorand, enabling investors to fractional ownership of fund units with the minimum investment of EUR 125,000. The fund units can be subscribed to over STOKR with USD or USDt. The tokenized fund will provide a number of benefits, such as automated compliance, the ability to transfer the fund units peer-to-peer in tokenized form, deep liquidity, and decreased cost for investors holding the fund units.

“There are many professional and institutional investors currently waiting on the sidelines looking for an efficient and secure way to deploy massive amounts of capital in this industry,” STOKR co-founder Arnab Naskar commented on the tokenization of the fund units. “The Aquarius Alternative High Yield Debt Fund speaks to this exact target group with a compelling management fee of 1%. The fund chose USDt as the stablecoin for the fund as it is by far the largest and most widely used stablecoin in the world and has a long track record of high-quality customer care and satisfaction. Tokenizing such a fund allows investors from the legacy world to access stablecoin yield.”

About STOKR

STOKR is the EU’s pioneering digital investment marketplace for alternative assets, where smart investors connect with and fund innovative businesses.

STOKR is the all-in-one solution for young and growing ventures looking to raise capital in the EU. Operating out of Luxembourg, STOKR provides founders with the full suite of technical deployment, investment structuring, and compliance support for the issuance of EU-compliant security token offerings (STOs).

Through carefully selected high-profile offerings, STOKR fosters a risk-reduced environment, liberates investment opportunities from traditional venture capital, and directly connects visionary ventures to a network of professional and retail investors. STOKR allows investors to participate in the future success of a diverse range of ventures through profit- or revenue-sharing rights, without middlemen such as custodians or brokers.  

CONTACT

Vivian Cheng

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