Twinstake executes first swap by a staking provider using CESR rate
In a momentous week of mainstream and TradFi crypto adoption, marked by the launch of Ether ETFs in the US, Twinstake is proud to have participated in another industry milestone: the 1st swap transaction by a staking provider on the CESR™ (Composite Ether Staking Rate) by CoinDesk Indices & CoinFund.
Twinstake, the leading institutionally-focused staking provider, and Nonco, the innovative crypto broker-dealer, have joined forces to trade a fixed for floating CESR rate swap for Twinstake’s own account.
We believe this transaction is just the tip of the enormous iceberg of financial transactions that will be built off the back of this benchmark, to consolidate CESR as the standard for measuring market-wide ETH total return performance. With CESR as the cornerstone for spot rewards rate, it will be possible for further financial innovation to grow in ETH and crypto more generally. Spot rewards rates will lead to forward ones, rewards curves will develop and allow for a vital discounting function to correctly price crypto assets & projects based on expected future returns, and bigger & more complex products will be born as crypto capital markets mature.
Twinstake is very excited to take part in the natural development of this process and very optimistic of what lies ahead in 2024 and beyond for crypto and staking.
Congratulations to Alan Campbell from CoinDesk Indices and Chris Perkins from CoinFund for the fabulous work on creating and growing CESR, and to Fernando Martinez and Jeff Howard at Nonco for pushing the boundaries of its financial application.
For more on this announcement, please read Nonco's press release here.
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