Crypto gets to grips with interest rate swaps

New derivatives provide synthetic access to staking yields and are being used in structured products

yield-staking-ETH

The interest rate swap – the workhorse of the derivatives market – has been reinvented for the crypto world, but in a form that most market veterans would struggle to recognise.

Last year saw the introduction of so-called staking yield swaps that exchange fixed payments for floating payments based on variable fees earned from staking ETH to power the Ethereum blockchain.

First launched by institutional crypto platform FalconX, the idea was to give investors access to staking yields without

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