Digital asset ETP specialist 21Shares has listed the world’s first ETP providing exposure to MATIC, the native token underpinning the Polygon network.
Polygon is designed to help the ethereum blockchain expand in size, security, efficiency, and usefulness.
The 21Shares Polygon ETP has been listed on SIX Swiss Exchange and is available to trade in US dollars (POLY SW), euros (POLYEUR SW), and Swiss francs (POLYCHF SW).
Polygon is a scaling solution offering multiple tools to simplify, speed up, and reduce the costs of transactions on the ethereum blockchain.
Ethereum is a well-established, open-ended decentralized platform and the leading venue for the deployment of smart contracts.
Due to ethereum’s wide range of applications, activity on its blockchain has surged, leading to congestion and high ‘gas fees’, the fee that miners demand to process transactions. Ethereum users are forced to either accept high gas fees to ensure their transaction is processed quickly or, alternatively, face delays and even the possibility that their transaction will be dropped if their gas price bid is too low.
Polygon seeks to address this shortcoming, helping ethereum to expand in size, security, efficiency, and usefulness. It is essentially an add-on layer utilizing sidechains that run alongside ethereum without changing the original blockchain.
Polygon’s name reflects its many sides, shapes, and uses, offering a simpler, versatile framework that can be customized to best suit different types of participants wishing to enact transactions on the ethereum blockchain.
The MATIC token is used to pay transaction fees and participate in proof-of-stake consensus on the Polygon network. It has a current market capitalization of $10.8 billion, making it the twenty-first-largest cryptocurrency globally.
The 21Shares Polygon ETP offers institutional investors easy access to the MATIC token through a liquid, regulated vehicle without the technical challenges of setting up private keys or crypto wallets.
It uses full direct, so-called ‘physical’ replication with each ETP share being 100% collateralized by a corresponding investment in MATIC which is stored using an institutional-grade custody solution provided by Coinbase.
The ETP comes with an expense ratio of 2.50%.