Sept 25, 2023

Fig Investments Receives Regulatory Approval to Pilot Test Crypto Structured Note Platform

Edmonton, AB and Vancouver, BC — Volatility Labs Inc. dba Fig Investments (“Fig“ or “Fig Investments”), is excited to announce that it has received exemptive relief from the Alberta Securities Commission (ASC) and British Columbia Securities Commission (BCSC) to permit it to distribute novel crypto structured investment products to accredited investors. The exemption will allow Fig to pilot test its ground-breaking technology platform, which promises to disrupt the existing structured notes market by introducing a transparent, efficient, and inclusive alternative.

Fig’s intuitive, digital-native web platform enables instant access to structured notes with customizable risk and return parameters that provide hedged exposure to price movement in the bitcoin (BTC) and Ether (ETH) markets. Fig's innovation seeks to bring transparency and inclusivity to the trillion-dollar structured note market, which is currently dominated by traditional investment banks.

Fig’s Platform Helps Investors Get Risk-Managed Exposure to Crypto

Currently, investors seeking exposure to BTC or ETH can buy and hold coins directly or invest in an ETF that holds the crypto asset. Both alternatives offer long-only, unhedged exposure. Holding crypto assets directly also exposes investors to hack risk due to the bearer nature of crypto assets and their susceptibility to theft and hacks. In addition, holding and trading digital assets through non-regulated crypto exchanges has been risky as well, from both custody problems and hacks and thefts.

Fig’s crypto structured notes help investors get exposure to BTC and ETH, while reducing custody and asset price risk. Through Fig’s structuring engine, investors can customize a specific fixed return percentage that will automatically be repaid at maturity, with a variable return based on capped directional exposure to BTC or ETH – a first in the world. The structured notes have well documented and understood traditional custody and settlement infrastructure, with underlying portfolios comprised of U.S. treasuries and OTC crypto options, providing investors of Fig’s notes with peace of mind.

Securing a Competitive Advantage with First-of-its-Kind Exemptive Relief

First-of-its-kind exemptive relief granted by the ASC and BCSC will allow Fig to test its platform with accredited investors in Alberta, British Columbia and eligible foreign jurisdictions. If the pilot test is successful, Fig intends to register as a portfolio manager and exempt market dealer in Canadian jurisdictions to allow for broader distribution of its products.

Fig's initial focus will be on crypto structured investment products, with a long-term goal of expanding to equity structured products and digital representations of all asset classes. Ultimately, Fig seeks to introduce the world to its blockchain-based settlement protocol for bilateral, over-the-counter option contracts.

Accredited investors are invited to explore Fig’s structured notes directly at www.fig.investments.

Collaboration with Alberta Innovates to Bring Blockchain-Based Derivative Settlement Protocol

In 2022, Fig Investments received a grant from Alberta Innovates for developing a blockchain-based settlement protocol for settling bilateral option contracts on crypto assets. Its long-term goal is to launch the on-chain settlement protocol on one or more public blockchain networks and to encourage the adoption of on-chain settlement for crypto options and other types of derivative contracts.

“We are very thankful for the support from Alberta Innovates and all stakeholders. We are excited by the technological possibilities and look forward to contributing to the research and development of blockchain-based derivative settlement technology to benefit global capital markets,” added Guanzhi Ma.

About Fig Investments

Fig Investments was co-founded by Guanzhi Ma, CFA and Tony Qian in Edmonton, Alberta in 2022. The company’s co-founders have deep industry experience in fixed income portfolio management and hyper-scale software engineering. With cutting-edge technology and a strong commitment to regulatory compliance, Fig is set to revolutionize the $10 trillion+ structured products market.

By focusing on transparency, efficiency, and inclusivity, Fig is redrawing the boundaries of the investment landscape, opening a world of unprecedented opportunities for investors and institutions globally.