Optimis’ structured rate security is a tokenized debt instrument having a weighted-average coupon comprised of fixed and floating interest rates. The tokenized security is modeled with the option to adjust the weighted exposures between these interest rates through maturity. With this structure, an issuer is able to lock-in interest rate exposure at issuance, with the option to adjust interest rate exposure throughout the life of the security. This approach to structured rate securities issuance enables innovation in debt securities issuance and mitigation of risk exposure.
- Enables participants to atomically transact across markets
- Issuers determine the timing, magnitude, and velocity of adjustments
- Eliminates collateral and capital costs
- Reduces counterparty credit risk
- Smart contracts facilitate account updates and processing