India INX will be the trading platform and Cosmea Financial Holdings will be the distributor, while Kling Trading will be the technology partner
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Torus Kling Blockchain IFSC, a joint venture between Cosmea Financial Holdings and Kling Trading India, has signed a memorandum of understanding (MoU) with India INX to launch the country’s first bitcoin and ethereum futures exchange-traded funds (ETFs) -- the first outside of the US.
As per the MoU, India INX will be the trading platform and Cosmea Financial Holdings will do the distribution, while Kling Trading will be the technology partner.
Cosmea, promoted by ex-Reliance Capital CEO Sam Ghosh, has applied to the Reserve Bank of India for a small finance bank licence and is awaiting regulatory approval.
India INX, BSE’s international arm, started trading activities in 2017 and is India’s first international exchange set up at the GIFT IFSC.
Torus Kling Blockchain IFSC will be the liquidity provider to India INX by providing round-the-clock liquidity with smart order routing.
The ETF futures are expected to be launched by the end of this fiscal under a sandbox construct of the International Financial Services Centres Authority. The launch of the products is subject to IFSCA and other regulatory approvals. “Exchange trade products allow trading through regular investment accounts, bypassing the hassle and security concerns of cryptocurrency exchanges," said Krishna Mohan Meenavalli, CEO, Torus Kling Blockchain IFSC.
Apart from the digital assets, the Gift City startup is also launching US-listed large-cap discount certificates of metaverse companies. The company says, these will be the first Asian discount certificates tracking metaverse large-cap stocks in the US and European markets.
Torus Kling Blockchain is targeting $1 billion in assets under management in the first two years from customers participating in blockchain-backed products through ETFs and discount certificates.
According to the company, these targets are based on getting regulatory approvals for launching these products.
“India INX at GIFT IFSC is looking at exploring launch of digital asset-based products and has already made an application to IFSCA under regulatory sandbox," said V. Balasubramaniam, managing director and CEO, India INX.
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