Dear Nuon community,
We enthusiastically support your project and believe that flatcoins will play a significant role in future on-chain transactions and value storage. We commend your ongoing efforts and hope to see your project continue on this promising trajectory.
Background
Backed Finance AG is a Swiss-based company that has developed a compliant solution for issuing freely transferable tokenized versions of tradable securities, such as stocks, bonds, and ETFs. Assets are issued by our subsidiary, Backed Assets GmbH. This is a dedicated special-purpose vehicle that benefits from Switzerland’s innovation-friendly regulations, such as the Distributed Ledger Technology (DLT) Act, which allows the existence and transfer of digital asset securities on permissionless venues.
Key points about Backed and bTokens:
- Backed offers tokenized structured products under Swiss law. bTokens are tracker certificates pegged to the underlying asset’s value and fully backed by it.
- All underlying assets are held by regulated Swiss custodian banks.
- Backed and its products are trusted by leading industry players such as Aragon, Gnosis, Ribbon, and Angle.
We believe two of our bTokens align perfectly with NUON’s collateralization needs:
bCSPX: This token tracks the performance of the iShares Core S&P 500 UCITS ETF USD, providing long-term price appreciation potential and consistently outperforming inflation over time.
$1000 invested in S&P500 in 2003 generated a 632.15% return but adjusted for inflation, this is 337.69%. Past performance is not indicative of future performance.
bERNA: This token tracks the iShares $ Ultrashort Bond UCITS ETF, offering stable and liquid yield generated from US dollar-denominated investment grade bonds from companies including Goldman Sachs, Toyota Motor, Bank Of America, and IBM. The current weighted average yield is 5.94%.
Liquidity
The liquidity of these tokens on Backed’s primary market is as great as the liquidity in the underlying assets. Issuances and small redemptions are usually settled on T0, and large redemptions ($300k+) typically take 2 to 3 working days due to the T+2 settlement cycle in TradFi. Backed customers can issue and redeem tokens via our web application or an API.
Other protocols have enlisted the service of Market Makers to facilitate regular liquidations and issuances, and this is something Nuon can also consider. We would happily make introductions.
In the next month, we will launch the first on-chain liquidity pool for our permissioned bIB01 token, and we shall continue to support the development of new liquidity pools.
Benefits to NUON
The Nuon community can easily rebalance the proportions of collateral to align with the protocol’s evolving needs. This flexibility ensures that the protocol remains adaptable to market conditions.
Angle Protocol has successfully utilized bTokens to collateralize agEUR and provide yield for stEUR, demonstrating the effectiveness of our solutions.
Backed eliminates the complexities of onboarding with traditional finance, establishing special-purpose vehicles, or building tokenization infrastructure from scratch. bTokens can significantly enhance Nuon’s collateralization strategy, offering inflation protection, stable yield, and adaptability to the protocol’s needs.
Disclaimers:
Not for the distribution to any U.S. Person or any person or address in the United States.
Backed DOES NOT sell its tokens to U.S. Persons or for the account or benefit of U.S. Persons, and tokens are not marketed, offered, or solicited in the U.S. or in any other prohibited jurisdiction.
For a full list of prohibited and restricted countries and review of legal documentation, please visit https://www.backedassets.fi/legal-documentation
The Backed Assets bCSPX (ticker symbol: bCSPX) is a tracker certificate issued as an ERC-20 token, which tracks the price of the iShares Core S&P 500 UCITS ETF USD.
Backed Finance AG and its subsidiary Backed Assets GmbH are not affiliates of or licensed by BlackRock Inc, BlackRock Fund Advisors and any of its affiliates (“BlackRock”) or S&P Global and any of its affiliates (“S&P”), and neither BlackRock nor S&P are responsible in any way to bCSPX products.
The Backed Assets bERNA (ticker symbol: bERNA) is a tracker certificate issued as an ERC-20 token, which tracks the price of the iShares $ Ultrashort Bond UCITS ETF USD. Backed Finance AG and its subsidiary Backed Assets GmbH are not affiliates of or licensed by BlackRock Inc, BlackRock Fund Advisors and any of its affiliates (“BlackRock”). BlackRock is not responsible in any way to bERNA products.