KEY TAKEAWAYS
- VanEck has launched a new financial product that provides investors access to SUI, a cryptocurrency linked to the Sui network.
- This product is backed by real SUI tokens held in a regulated custodian environment, simplifying investment for users without needing a digital wallet.
- The Sui network has experienced significant growth, with a 430% increase in total value locked and a 692% rise in DeFi volume over the past year.
- Institutional confidence in the Sui network is growing, as evidenced by new services and stablecoin introductions like USDC and AUSD.
Investment firm VanEck has introduced a new financial product that offers investors access to SUI, a cryptocurrency associated with the Sui network. This product is backed by real SUI tokens, which are held in a regulated custodian environment by VanEck for the benefit of its holders. The announcement was made here.
VanEck, a privately held firm with a 70-year history of providing investment solutions across various industries and asset classes, has been adapting to changes in the global financial sector. In recent years, the firm has expanded its offerings to include cryptocurrencies, with financial products referencing Bitcoin, Ethereum, and Solana.
The addition of SUI to VanEck’s portfolio provides customers with access to the Sui network, which has seen significant growth. Over the past year, the network recorded a 430 percent increase in total value locked (TVL) and a 692 percent rise in DeFi volume.
How VanEck’s SUI-Backed Product Works
The SUI-backed financial product by VanEck involves the firm holding the exact amount of tokens covered by the instrument. When an investor purchases this instrument, its value corresponds to the value of the SUI it represents. This setup allows users to invest and divest easily, similar to other financial products.
Importantly, VanEck’s clients do not need to obtain a digital wallet on the Sui network, nor do they have direct ownership of the SUI tokens represented by the product. This feature simplifies the investment process for those interested in gaining exposure to SUI without the complexities of managing digital assets directly.
Institutional Confidence in Sui Network
The launch of VanEck’s SUI-based product is part of a broader trend of institutional confidence in the Sui network. This confidence is reflected in recent developments, including services offered by Copper and the introduction of stablecoins like USDC and AUSD on the network.
These developments indicate a growing interest and trust in the Sui network’s capabilities and potential, further solidifying its position in the cryptocurrency landscape.
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