Synthesised token offers new exposure route for S&P500

Author: John Crabb | Published: 17 Apr 2019

A new and relatively unknown derivative-based crypto token will allow non-institutional investors outside of the US and other developed markets access to exposure to the US stock market index S&P500.

Presenting something of a litmus test for future technologies, developers have used a process called trustless tokenisation. The coin, which is known as US Stocks, will mimic the S&P500 by using derivatives to create a token that tracks the underlying synthetic derivatives exposure.

The project has faced criticism, however. Some have questioned the choice of the stable Dai coin and the relatively unknown Chinese decentralised crypto exchange DDEX that have been chosen to release the token, as well as the developer's chances of avoiding a regulatory backlash.

KEY TAKEAWAYSA new  derivative-based crypto token will allow non-institutional investors outside of the US and other developed markets access to exposure to the US stock market index S&P500; ...