3.1 What is $BRICS?
A tokenized synthetic CDO
$BRICS is a tokenized synthetic CDO that is legally accessible to both institutional and retail investors. It provides risk exposure to investment-grade bank-intermediated credit assets with capped downside.
Key Features
Tokenized Risk: Transforms bank credit risk into a digital asset, representing a claim on coupon payments from partner banks.
AI-Optimized Portfolios: AI selects low-risk portfolios from a database of 300,000 corporate banking clients to minimize default probabilities.
Cushioned Protection: Backed by high-quality sovereign notes, providing an initial layer of risk protection.
Leveraged Returns: Offers “CDO-squared” multiplier returns, combining government bond yields and credit default swap premiums — returns are offered by means of airdrops and token burning.
Risk Management
Downside Protection: A full guarantee covers the notional value of credit originated by syndicate banks, limited to the par value of the sovereign collateral facility (i.e. $500 million).
Bank 'Skin in the Game': Originating banks (NASASA, Old Mutual, FirstRand, Nedbank) retain a 1%-5% equity tranche to align incentives and mitigate moral hazard.
$BRICS bridges traditional finance with tokenized innovation, delivering high-yield opportunities while maintaining robust risk safeguards.
Last updated