Marex Solutions, a derivatives-focused division of the London-based financial services provider Marex, unveiled a Coinbase (COIN) linked structured product that offers enhanced coupons in return for only partially protecting capital risk on the cryptocurrency exchange's shares.
The six-month barrier reverse convertible (BRC) note issued Wednesday by Marex's FCA regulated entity Marex Financial offers a guaranteed annual 40% coupon paid monthly, providing holders with regular cash flow.
It also has a predefined "barrier" at 66% of the Nasdaq-listed stock's price – $37.8 on the issue date. As long as the shares stay above $25 during the term, Marex Financial will repay the invested amount in full at expiry. If the barrier is hit or breached, the partial downside protection disappears, and the holder will be allocated COIN shares at $25, exposing them to market vicissitudes.