CDG Offers Access to Structured Products For Institutions & Enterprise
Combining CDG’s infrastructure and GenTwo Digital’s Structured Product AMC helps our clients access and invest in digital assets.
Passive yield opportunities in crypto currencies remain one of the major investment stories of 2020. However only a handful of specialist firms currently offer fully KYC’d and compliant services to meet this demand and the set up time and costs for the asset management market still remains prohibitive.
In response to this, CDG has created a cost effective and compliant B2B solution for mainstream asset managers wishing to build and run portfolios for their clients seeking such yield opportunities.
Working with leading Swiss digital asset securitization firm GenTwo Digital, CDG Services Ireland now offers asset managers access to Actively Managed Certificates (“AMC’s) so they can quickly structure and deploy digital assets portfolios for qualified investors seeking these passive yield opportunities. The AMC is administered via CDG’s sophisticated controls and custodial platform.
With this new jointly offered solution, asset managers can build, issue, safeguard and administer AMC’s in a matter of weeks. With flexibility in portfolio construction, they offer qualified investors arms length opportunities to invest in single, dual or baskets of crypto currencies.
What is an AMC?
Active Managed Certificates (AMC) are simple and flexible structured products. They can be tailored to any strategy and innovative idea in the digital asset space. Several other structured products can be easily and conveniently integrated in a single AMC. These can easily be managed simultaneously and mixed with other assets or instruments such as stocks, bonds or funds. All managed accounts with identically managed asset allocation can even be managed through a single AMC. Asset managers can thereby reduce their operating expenses and also from the outset avoid tracking errors within their investment strategy.
Thanks to the off-balance-sheet issuance setup, a discretionary portfolio no longer carries a bank issuer risk and is not otherwise subject to many of the typical restrictions that occur with most traditional issuers of structured products.
How does it work?
AMC’s are issued and administered via GenTwo Digital with CDG acting as custodian for the safeguarding and administering of the product. Once issued, clients build specific policies and establish rules to manage the AMC on CDG’s custodial platform; these include transaction initiation and authorisation hierarchies, threshold velocities and portfolio balancing. Our sophisticated network security model means any digital asset type can be safeguarded on the platform without impacting security. Asset keys are either hosted centrally in Level 4 HSM’s or via CDG’s proprietary multi-hosting scheme in IBM’s hybrid cloud encrypted enclaves distributed around the world.
“We already have a number of clients working with GenTwo and we were impressed by the sophistication and ease of use of the product,” commented Luke Sully CEO of CDG. “Their AMC product also beats out the competition on price and ease of use which matches CDG’s client-first ethos.”
This new offering will seek to satisfy increased demand from new market entrants and mainstream money managers looking for exposure to crypto currency asset classes.
CDG will also access AMC’s to power a range of new proprietary products to service institutional liquidity requirements in 2021.
For more information please contact CDG at info@custodydigital.com or contact one of the team directly.
