Fineqia launches the world’s first DeFi yield Cardano ETN

Fineqia AG, a European subsidiary of digital assets and investment firm Fineqia International, has made a significant step forward in the world of decentralized finance (DeFi) by launching the world’s first DeFi yield Cardano exchange-traded note (ETN). The Fineqia FTSE Cardano Enhanced Yield ETN, which was listed on the Vienna Stock Exchange on January 24, 2025, offers investors the opportunity to earn yield from Cardano (ADA) assets, while also benefiting from price appreciation, regardless of the price movement of the underlying asset.

ETNs, or exchange-traded notes, are debt instruments that collateralize the value of the underlying asset, in this case, Cardano. The new YADA ETN, as it’s called, allows exposure to the yield-bearing opportunities in the DeFi space by deploying ADA tokens across various yield-generating DeFi protocols. This product gives investors the ability to profit from the rapidly growing decentralized finance sector without having to directly engage in the complexities of DeFi themselves.

Currently, the global DeFi market has more than $155 billion in total value locked (TVL) across different protocols. During the previous bull market, the TVL peaked at over $207 billion, and projections suggest that the global DeFi ecosystem could see its revenue grow significantly, with estimates from Statista forecasting $542 billion in revenue by 2025.

Fineqia’s collaboration with FTSE Russell, a subsidiary of the London Stock Exchange, to provide the ETN’s index will allow for the continuous tracking and adjustment of the asset’s performance. This marks a notable milestone in the continued growth and evolution of the DeFi sector within the traditional financial markets.

The launch of this Cardano ETN follows Fineqia AG receiving approval from the Liechtenstein Financial Market Authority (FMA). This regulatory approval allows the company to issue crypto-backed exchange-traded notes across the European Union, which expands their ability to offer digital asset products to a broader range of investors.

The YADA ETN is also contributing to the growing crypto exchange-traded product (ETP) market in the European Union, which has seen a rapid rise in crypto offerings. Of the 139 crypto ETPs listed on the Vienna Stock Exchange, about a third are crypto-based. Globally, the total number of crypto ETPs exceeds 220, with these products collectively managing over $216 billion in assets.

Among these crypto ETPs, the recent launch of U.S. spot Bitcoin ETFs in January 2024 has gained significant attention, with over $121 billion in assets under management (AUM) and more than $4.2 billion in net inflows year-to-date, reflecting a broader optimism in the crypto market. This positive market sentiment is also attributed to geopolitical events such as Trump’s victory and his assumption of office.

As the DeFi and digital asset sectors continue to mature, products like the Fineqia FTSE Cardano Enhanced Yield ETN are opening up new ways for investors to participate in the growth of decentralized finance, while also offering exposure to the potential of Cardano and other blockchain technologies. This marks an important step in bridging traditional finance with the emerging digital asset landscape.