Delphx talks Quantem Crypto Securities program

Executive Summary

• Delphx Capital Markets Inc. provided an update on its Quantem Crypto Securities (QCS) program, stating that the fully collateralized offering is currently being evaluated by multiple digital asset treasuries and hedge funds for portfolio inclusion.
• The company has commenced a strategic review to potentially establish its own digital asset treasury, which would utilize QCS as a direct downside hedge against cryptocurrency volatility.
• Delphx is attending the Bitcoin Treasuries Conference in New York to advance discussions with potential partners and expects to finalize initial alignments by the end of the month.

Key Details

• QCS Program Status: The Quantem Crypto Securities (QCS) offering is described as "fully collateralized" and is being evaluated by institutional investors, specifically digital asset treasuries and hedge funds.
• Product Features: QCS is positioned as a Wall Street-originated structured product for decentralized markets, offering downside protection against significant cryptocurrency price declines while eliminating counterparty risk.
• Strategic Review: Management is evaluating the potential of establishing its own digital asset treasury. If established, this treasury would incorporate QCS as a direct downside hedge.
• Conference Activity: Delphx is attending the Bitcoin Treasuries Conference in New York to discuss potential first adopters and partners.
• Timeline: The company anticipates having initial alignments finalized by the end of the month.
• Product Structure (from About section):
  • Collateralized Put Options (CPOs): Provide secured rating downgrade protection for corporate bonds and/or protection from losses in cryptocurrency holdings.
  • Collateralized Reference Notes (CRNs): Enable investors to take on capped rating downgrade and/or cryptocurrency loss exposure in exchange for attractive returns.
  • Custody: All CPOs and CRNs are fully collateralized and held in custody by U.S. Bank.
  • Target Audience: Qualified Institutional Investors (QIBs).

Notable Quotes

• "The company is pleased to report that its fully collateralized QCS offering is currently being evaluated by multiple digital asset treasuries and hedge funds for inclusion in their portfolio strategies."
• "Delphx has commenced a strategic review to evaluate the potential of establishing its own digital asset treasury. Any such digital asset treasury would incorporate QCS as a direct downside hedge."