Delphx broker dealer to market private placements

Executive Summary

• Delphx Capital Markets Inc. is expanding its broker-dealer subsidiary, Delphx Services Corp., to market private placements for public and private growth companies, aiming to generate fee revenue to support the eventual launch of its core credit rating securities (CRS) product.
• The company is developing a new structured product called "Quantum Crypto Security" designed to allow institutional buyers and corporate treasuries to hedge cryptocurrency holdings safely without counterparty risk.
• The company identifies three distinct potential revenue verticals and expects enhanced revenue opportunities, with the new crypto product scheduled for rollout in late August or early September.

Key Details

• Broker-Dealer Expansion: Delphx is leveraging Delphx Services Corp. to market private placements across North America.
• Current Engagements: Two private placement engagements have been executed and are currently being marketed.
• Strategic Rationale: Revenue from broker-dealer fees is intended to strengthen the income statement and fund the market entry of the core Credit Rating Securities (CRS) product.
• New Product Launch: A new structured product named "Quantum Crypto Security" is in development.
• Product Functionality: The new tool allows for safe hedging of cryptocurrency holdings, differentiating itself from over-the-counter options and leveraged transactions by mitigating counterparty risks.
• Target Market: Qualified institutional buyers and larger corporate treasury strategies seeking to hedge holdings in a volatile crypto market.
• Launch Timeline: Expected rollout at the end of August or early September.
• Go-to-Market Strategy: Unlike the CRS strategy, the new crypto solution intends to populate with active users and associated transactions at the moment of launch.
• Market Context: The company notes a "dearth of new company crypto treasuries" and aims to help select companies differentiate themselves through proper hedging.
• Risk Disclosure: The release explicitly notes that the crypto market is high risk and subject to significant volatility.
• Product Portfolio: The company continues to develop Collateralized Put Options (CPOs) and Collateralized Reference Notes (CRNs) through its special-purpose vehicle, Quantem LLC, which are fully collateralized and held in custody by U.S. Bank.

Notable Quotes

• "With three distinct potential revenue verticals, the company expects enhanced revenue opportunities across a broad range of sectors."