New York, United States, November 10th, 2026, Chainwire
Drakewell introduces SPYdw, a token designed to capture the S&P 500’s upside with the downside hedged
JUSD Finance today became Drakewell, an issuer of onchain structured products, and introduced SPYdw, a hedged SPY portfolio designed to give holders the upside of the S&P 500 with its downside hedged. SPYdw is issued as a single, fully composable token, so the same position an institution holds in its treasury can also serve as a building block across DeFi.
Drakewell, launched earlier this year, has attracted more than $25 million in deposits to date, has expanded across Ethereum, Arbitrum, and Aleo, and is backed by JPEG Trading.
Hedging equity exposure has long come with a catch. Investors who want to soften the market’s bad years usually give something back in its good ones, whether that is a ceiling on gains or a running cost that drags on returns. SPYdw is built around a different idea: let yield generated on the asset itself pay for its hedge, so holders do not have to give up the upside to get it.
SPYdw Structure and Hedging Mechanism
Yield pays for the hedge. The underlying collateral of SPYdw generates yield. That yield buys the S&P 500 options, and the collateral stays in place as the floor.
When a holder mints SPYdw, the yield on its collateral pays for one-year SPY call options. If SPY rises over the year, the calls capture the gain. If SPY falls, the calls expire, the collateral stays in place, and the hedge has done its job. The result is exposure to the S&P 500’s up years, with its down years hedged. SPYdw aims to track SPY’s gains closely rather than outrun them.
Built to be built on
Drakewell believes SPYdw is the first product globally to hedge SPY’s downside without capping its upside. It is designed to be more than a position. As a single, fungible token, SPYdw is fully composable: it can sit in a treasury alongside stablecoins, be held by vaults and onchain portfolios, and be built into new products across DeFi. SPYdw is available today at drakewell.fi and on Uniswap, and whitelisted institutional participants can mint and burn the token directly.
“Most people who own the S&P 500 are making a quiet bet that the good years will outrun the bad ones, and over a long enough time horizon that view is normally right,” said Kevin March, Cofounder at JPEG Trading. “SPYdw changes the shape of that bet. Holders have far more flexibility over how long they need to hold to realize expected S&P 500 gains.”
Company Rebranding and Expanded Product Scope
The new name reflects what the company has become. JUSD Finance launched with one product, a fixed yield protocol, and its name described exactly that. With SPYdw, the company is a multi-product issuer and needs an identity with a broader mandate: Drakewell is the issuer, and the JUSD token is now USDdw.
About Drakewell
Drakewell is an issuer of onchain structured products, backed by JPEG Trading. Its products are USDdw, a fixed yield token, and SPYdw, a hedged SPY portfolio. Drakewell products are offered to eligible institutional participants at drakewell.fi.
Disclaimer
This press release is for information only. It is not an offer to sell, or a solicitation of an offer to buy, any token, security or other financial product. Drakewell products are offered only to eligible institutional participants, are not offered to U.S. persons, and are not available in all jurisdictions.
SPYdw is hedged, not guaranteed. Its value can fall, including below the amount deposited. USDdw rates are set per vault and can change. Digital assets, smart contracts, options and credit vaults carry risk, including loss of the full amount deposited.
SPYdw is not sponsored, endorsed, sold or promoted by State Street Global Advisors, S&P Dow Jones Indices or their affiliates. Drakewell is not affiliated with the Drake Well Museum or the Commonwealth of Pennsylvania. Full terms and disclosures are at drakewell.fi.
Contact
Anna Beesoon
Drakewell
admin@49thpercentile.com
This is a press release / sponsored content. Read our Sponsored Content Policy. This article is not intended as financial advice. Educational purposes only.
