Published by Jessica Weisman-Pitts
Posted on February 25, 2025
San Francisco, California, USA, February 25th, 2025, FinanceWire
Reserve Index Protocol introduces DTFs, allowing anyone to create, trade, and redeem crypto index products with instant 24/7 access and real-time transparency.
Today, ABC Labs, the team behind Reserve, launches their Reserve Index Protocol, which offers a first-of-its-kind, build-your-own ETF-like experience to crypto. The Index Protocol’s Decentralized Token Folios (DTFs) bring everyday investors and institutions the one-click, easy-to-use experience they’ve become accustomed to since the S&P 500 ETF revolutionized the investing world in 1992. Starting today, 12 index-based DTFs are available, including the Bloomberg Galaxy Crypto Index, CoinDesk DeFi Select Index, and MarketVector Token Terminal Fundamental Index by Re7 Labs; the Virtuals Index by Virtuals Protocol; the RWA Index and Large Cap DeFi Index by MEV Capital; and the Alpha Base Index by Altcoinist.com; and more.
With over 50,000 new tokens launching daily, DTFs simplify the process of investing in crypto by bundling tokens into broad, diversified crypto indexes or emerging thematic narratives that empower investors to tap into sectors like DeFi, real-world assets (RWA), AI, and memes without the guesswork. Anyone can create a new DTF, and anyone can mint or redeem its tokens 24/7 in a single click.
“Our mission is to fight inflation and expand access to better financial products, and we firmly believe that crypto will be an integral part of the future financial landscape.” says Thomas Mattimore, CEO of ABC Labs. “We built the Reserve Index Protocol to become a ‘decentralized BlackRock,’ which we believe will open up the floodgates of creativity. Plus, by partnering with some of the premier index creators in the world, people can now easily get one-click exposure to this growing industry alongside trusted brand names.”“The integration of the MarketVector’s indexes into Reserve’s DTF platform through our partnership with Re7 Labs is an exciting moment for institutional-grade crypto indexing. By combining MarketVector’s proven methodology with Reserve’s trusted, permissionless infrastructure, we’re making regulated, professional-grade indexes more accessible while maintaining the transparency that institutional and retail investors demand,” says Martin Leinweber, Director of Digital Asset Research & Strategy at MarketVector Indexes.
Like an ETF, each DTF unit is redeemable 1:1 for its underlying basket of assets. However, redemption happens via a smart contract, so anyone—not just authorized participants & market makers—can redeem. The underlying tokens remain in this contract, eliminating the need for a centralized custodian. Because DTFs operate on smart contracts, they can be governed by a decentralized body instead of a centralized investment company.
The Reserve Index Protocol also adds a powerful new incentive mechanism where creators are given more control over how fees from native tokens launched on the Reserve Index Protocol are divided up. This incentive approach allows DTF creators to form teams, raise capital, offer liquidity incentives, and so on.
“While ETFs revolutionized thematic investing, DTFs are completely redefining it. We’ve barely scratched the surface of what’s possible with onchain indexes, unlocking potential that was previously unimaginable. With Reserve’s Index Protocol, this is just the beginning,” says Connor Milner, Partnerships at Re7 Labs.
For more information users can visit Reserve’s DTF announcement blog post here and follow them on 𝕏 (formerly Twitter).
About ABC Labs:
ABC Labs is the team behind Reserve Yield Protocol and Reserve Index Protocol. Their mission is to fight inflation and expand access to better financial products.
Contact
Founder
Margaret Hyde
Margaret Hyde Consulting
margaret@mhconsulting.io
Explore more articles in the Finance category
