For the traditional wealth management client base, structured products have long ruled the roost. The mighty equity autocallable, in particular, has long been a favourite of investors, giving them a cushion of downside protection combined with upside exposure to single stocks or baskets.
Over the past year, though, the crypto industry has quietly been working on its own versions of structured products that are becoming more and more sophisticated as the months roll on.
These have largely existed in a corner of the crypto landscape known as decentralised finance (DeFi) – that is, unconnected to any centralised exchange such as Binance or FTX. Instead, the investor utilises smart contracts to conduct the investment strategy on their behalf.
While a centralised platform might block users from using derivatives depending on its jurisdiction’s regulatory status – for instance, UK…
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