Lowenstein Sandler represented Figment, one of the world’s largest blockchain infrastructure and services providers, in the execution of a first-of-its-kind staking-yield swap with FalconX, a digital assets and cryptocurrency platform for institutional investors.
A staking yield swap is similar to an interest rate swap: it offers an exchange of a fixed interest payment for a floating rate payment. In traditional interest rate swaps, the floating rate typically references a benchmark like SOFR, LIBOR or the Federal Funds Effective Rate, while a staking yield swap floating rate references the staking yield of a proof-of-stake token. The yield received is tracked within a blockchain wallet, has an immutable record, and can be viewed by anyone in possession of the public blockchain key.
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