Reserve, the platform known for its Decentralized Token Folios (DTFs), has teamed up with CF Benchmarks to launch the Large Cap Index DTF, ticker $LCAP, an onchain index token designed to give investors ETF-like exposure to the biggest names in crypto with a single token. The product tracks the CF Large Cap Index (Diversified Weight), is powered by Reserve’s DTF infrastructure and uses MEV Capital as its trading partner to provide institutional-grade scale and execution.
LCAP is backed 1:1 by the underlying assets held in smart contracts, not a synthetic exposure, and is benchmarked and weighted according to CF Benchmarks’ public methodology. The basket holds ten diversified-weighted cryptocurrencies, including Bitcoin, Ethereum and XRP, and is rebalanced quarterly. Because the DTF is always redeemable for the assets in the basket, Reserve says the token’s value remains aligned with the underlying tokens, and users can mint or redeem LCAP at any time.
The token is also notable for being the first onchain index token to trade on Kraken, one of the world’s largest digital asset platforms. That listing gives both retail and institutional traders access to a diversified crypto index product in a highly liquid venue, a development Thomas Mattimore, CEO of ABC Labs and contributor to the Reserve ecosystem, welcomed.
Mattimore said, “For the first time, we’re seeing retail and institutional customers gain access to diversified crypto index products in a highly-liquid venue like Kraken. LCAP gives users access to approximately 90% of the total cryptocurrency market cap in a decentralized, diversified index-based investment product that looks and feels like an ETF, but with the speed and availability of crypto”.
Crypto Financial Innovation
CF Benchmarks, the UK FCA-regulated index provider behind a number of high-profile crypto benchmarks, described the launch as a “major milestone in crypto financial innovation.” Sui Chung, CEO of CF Benchmarks, said that by tracking the firm’s Large-Cap Index, LCAP “will seamlessly deliver diversified exposure to the largest digital assets through one tokenized vehicle,” adding that the convergence of tokenization and robust benchmarking opens new paths for investors to gain straightforward market access at scale.
CF Benchmarks’ indices already underpin a wide swath of regulated crypto products and derivatives; the company notes that its benchmarks are integrated into several U.S. spot bitcoin ETFs and the vast majority of regulated crypto derivatives. Reserve, for its part, has seen more than $500 million in total value locked across its suite of Index and Yield DTFs, which allow users to earn diversified onchain yield on ETH and USDC.
ABC Labs, the team behind Reserve’s Yield and Index Protocols, framed the product as part of a broader mission to fight inflation and expand access to better financial products. Reserve itself positions the DTF framework as a permissionless way to create, own and govern index products and asset-backed currencies onchain: token baskets that behave like traditional ETFs but with the speed, transparency and composability of blockchain technology.With LCAP, Reserve and CF Benchmarks believe that a tokenized, fully collateralized index product, listed on a major exchange and governed by transparent, regulator-grade methodology, can bridge some of the gap between traditional indexed investing and the onchain world. For investors seeking broad, diversified exposure to the largest crypto assets without managing multiple positions, LCAP now offers a single, redeemable token that aims to deliver that promise.
