First-of-its-kind regulatory approval allows Fig to pilot its ground-breaking technology platform, which promises to disrupt the existing structured notes market.
EDMONTON, AB and VANCOUVER, BC, Oct. 6, 2023 /CNW/ – Volatility Labs Inc. dba Fig Investments (“Fig” or “Fig Investments”) is excited to announce that it has received exemptive relief from the Alberta Securities Commission (ASC) and British Columbia Securities Commission (BCSC) to permit distribution of its novel crypto structured investment products to accredited investors. The exemption will allow Fig to pilot its ground-breaking technology platform, which promises to disrupt the existing structured notes market by introducing a transparent, efficient, and inclusive alternative.
Fig’s intuitive, digital-native web platform enables instant access to structured notes with customizable risk and return parameters that provide hedged exposure to price movement in the Bitcoin (BTC) and Ether (ETH) markets. Fig’s innovation seeks to bring transparency and inclusivity to the trillion-dollar structured note market, which is currently dominated by traditional investment banks.
“With an estimated $7–$15 trillion in total assets under management (AUM) in the structured notes market, the industry is ripe for disruption,” said Guanzhi Ma, Co-founder and CEO of Fig Investments. “Our platform leverages technology to offer hyper-customizable products with turnaround in minutes instead of days, with a vision of democratizing access to investment opportunities that were previously inaccessible to most investors.”
Currently, investors seeking exposure to BTC or ETH can buy and hold coins directly, or invest in an ETF that holds the coins. Both options offer long-only, unhedged exposure, and holding coins directly also exposes investors to crypto risk due to the digital nature of the assets and their susceptibility to theft and hacks.
Fig’s crypto structured notes help investors get exposure to BTC and ETH, while reducing custody and asset price risk. Through Fig’s structuring engine, investors can customize a specific fixed return percentage that will automatically be repaid at maturity, with a variable return based on capped directional exposure to BTC or ETH – a first in the world. The structured notes have well documented and understood traditional custody and settlement infrastructure, with underlying portfolios comprised of U.S. treasuries and OTC crypto options.
First-of-its-kind exemptive relief granted by the ASC and BCSC will allow Fig to test its platform with accredited investors in Alberta, British Columbia and eligible foreign jurisdictions. If the pilot is successful, Fig intends to register as a portfolio manager and exempt market dealer in Canadian jurisdictions to allow for broader distribution of its products.
Fig’s initial focus will be on crypto structured investment products, with a long-term goal of expanding to equity structured products and digital representations of all asset classes. Ultimately, Fig seeks to introduce the world to its blockchain-based settlement protocol for bilateral, over-the-counter option contracts.
“We are pioneering transformative software-based investment tools which will usher in a more inclusive financial future. Our platform leverages technology to deliver hyper-customizable products with subsecond turnaround instead of days. We are excited to lead this new frontier with our unique backgrounds in fast-paced startups and asset management,” added Tony Qian, Co-founder and CTO of Fig Investments.
Accredited investors are invited to explore Fig’s structured notes directly at https://www.fig.investments/.
In 2022, Fig Investments received a grant from Alberta Innovates for developing a blockchain-based settlement protocol for settling bilateral option contracts on crypto assets. Its long-term goal is to launch the on-chain settlement protocol on one or more public blockchain networks and to encourage the adoption of on-chain settlement for crypto options and other types of derivative contracts.
“It is exciting and encouraging to see the securities regulators of Alberta and British Columbia providing an environment for fintech innovators like Volatility Labs Inc. (Fig Investments) to pilot its novel crypto linked investment product platform. We look forward to seeing the outcomes of this interprovincial collaboration and how the company’s platform uses technology to help investors get access to innovative investment products. Alberta Innovates is proud to have supported Volatility Labs through the Digital Traction program which supports digital tech companies with software development at the core,” Doug Holt, Associate Vice President, Investments, Alberta Innovates shares.
“We are very thankful for the support from Alberta Innovates and all stakeholders. We are excited by the technological possibilities and look forward to contributing to the research and development of blockchain-based derivative settlement technology to benefit global capital markets,” added Guanzhi Ma.
Fig Investments was co-founded by Guanzhi Ma, CFA and Tony Qian in Edmonton, Alberta in 2022. The company’s co-founders have deep industry experience in fixed income portfolio management and hyper-scale software engineering. With cutting-edge technology and a strong commitment to regulatory compliance, Fig is set to revolutionize the $10+ trillion structured products market.
By focusing on transparency, efficiency, and inclusivity, Fig is redrawing the boundaries of the investment landscape, opening a world of unprecedented opportunities for investors and institutions globally.
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SOURCE Fig Investments
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