So, issue a 100% backed stablecoin

Except the backing is a stock market index.

Now, work out how the issuer makes a profit…….

12 thoughts on “So, issue a 100% backed stablecoin”

  1. backed for the initial value or the index level whichever the lower. Issuer keeps any growth in the index. Holder keeps any in the coin. Lower band that should make it less volatile.

  2. Huzzah! We have a winner.

    As with margin calls at brokers, or premiums in an insurance company, the earnings from the float belong to the managers of the float, not the customers. True, if FTSE100 is offering 4% dividends then that’s a pretty hefty fee for running an index fund. But would be fun if there were enough stupid people out there to buy it through a stable coin….

  3. even if the dividends are rolled back in the manager can earn fees by lending the stocks out. that should be good for 40 basis points pa – about the same as many low fee mutual funds

  4. @Hallowed Be

    That was terrble, she explained nothing – it was SJW word salad


    Eddie Stobart just weeks from collapse
    “Eddie Stobart Logistics has been forced to accept an emergency high-interest loan to avoid a collapse before Christmas that would put more than 6,500 jobs at risk.

    The firm is taking a £55m loan from investment firm Dbay Advisors – with interest charged at an initial rate of 25pc…”

    If Stobart collapses, is there sufficient spare capacity available to fill the gap?

  5. I see a vast variety of trucker company logos on artics on the A14 & A1 as I travel around, and the proportion of Eddies has dropped a lot over the years, so the Eddie gap will be quickly filled. I wonder how this will affect Southend airport though.

  6. I did once see advertised a fund which offered to track 120% of growth in the FTSE100 but with a money-back guarantee if the value fell. There was no mention of dividends, which I assume was how they covered their costs.

    Investors in such things aren’t total idiots. They live in the Dunning-Kruger realm, where a little knowledge is a dangerous thing. They think they’re being clever by buying whatever weird structured product you’re offering.

  7. @TMB

    I watched again, her ramblings exposed one thing: BBC more scared of angering SA & Zim than angering their UK funders.

    The 10 seconds where “land reform” mentioned exemplifies BBC agenda

    Lips: look like the “stick on window while shopping” type

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