🌊 On-chain Feeder
This use case involves an investment vehicle set up under Luxembourg's securitization regulations, operating as a compartment within a Special Purpose...
This use case involves an investment vehicle set up under Luxembourg's securitization regulations, operating as a compartment within a Special Purpose Vehicle (SPV) under the Euro Medium Term Note (EMTN) Programme. The sole purpose of this feeder is to collect capital from investors using digital assets.
Key Features
- Stablecoin Capital Collection: The on-chain feeder exclusively collects investments in USDT (Tether) from its investors. This lets the feeder handle digital asset-based investments while still interacting with the traditional financial system.
- Stablecoin to Fiat Conversion: Once the capital is collected, the feeder converts the USDT into fiat currency (USD) and proceeds to invest 100% of the liquidity into another investment vehicle. In this case, the target fund is registered in the Cayman Islands.
- Compliance with Regulations: With the on-chain feeder, the Cayman Islands-based fund manager can accept stablecoin investments while maintaining full compliance with its existing regulations. This structure also allows the fund manager to avoid making changes to the fund's governing documents, such as the offering memorandum, which might otherwise be required to accommodate digital assets.
If you're interested in setting up a similar legal setup, get in touch.
💎 Digital Asset Fund
This fund is part of an Alternative Investment Fund (AIF) registered in Luxembourg, operating under a fully compliant regulatory framework. The fund's core...
💵 Money Market Fund
A Money Market Fund is a type of fund that invests in short-term, high-quality, low-risk debt instruments such as government bonds, treasury bills, and...