Tok-Edge has officially introduced the Redemption Token, a newly defined crypto asset category that forms the foundation of its upcoming fund structure.
The announcement comes as the firm emerges from stealth with a reported $15 million valuation and prepares to launch its first institutional-focused product.
The company recently raised approximately $1.5 million in early funding, backed by Marcus Meijer, a general partner and founder of a fund with $10 billion in assets under management.
Meijer, alongside a broader investor syndicate, is expected to anchor the fund with commitments of up to $10 million as Tok-Edge begins engaging institutional allocators, including family offices, venture investors, and crypto-native funds.
Bridging regulated finance and blockchain
At the core of Tok-Edge’s model is the Redemption Token, a structure designed to separate tradable blockchain assets from the legal ownership of fund shares.
While investors retain economic rights through traditional fund shares, Redemption Tokens are issued in parallel and serve as the mechanism required to redeem those shares at net asset value.
Unlike conventional fund structures, the tokens themselves can circulate freely on public blockchains such as Ethereum. This enables them to be traded on secondary markets and integrated into decentralized finance protocols, creating additional utility beyond the core redemption function.
By combining permissionless transferability with a defined operational role, the model introduces a hybrid structure that bridges regulated finance and open blockchain ecosystems.
The flexibility of the Redemption Token design allows for price discovery through market activity while maintaining a clear link to underlying fund mechanics. This separation of functions is intended to expand access and liquidity without compromising regulatory or structural integrity.
Tok-Edge’s first fund will implement this model through an actively managed strategy focused on liquid digital assets and decentralized finance opportunities. The investment approach is expected to generate returns through both directional exposure to crypto markets and yield-generating strategies such as staking and liquidity provision.
According to Raees Chowdhury, CIO of Tok-Edge, the Redemption Token serves as both a functional access point and a tradable instrument, allowing investors to redeem capital while also benefiting from broader market participation.
“Tok-Edge was founded to bring institutional-grade products to crypto markets, built around the openness and technological advantages of blockchain networks,” said Raees Chowdhury. “The Redemption Token is a new cryptoasset that acts as a key for fund investors to redeem their capital and can be traded freely in the secondary market for price discovery.”
Eric Benz, an advisor to the firm, highlighted that the model introduces a new architectural framework by separating the tradable layer from the legal ownership structure.
The fund is expected to launch with a cap of $21 million, aligned with its token generation event, where each dollar invested corresponds to the issuance of one Redemption Token. Tok-Edge is targeting a $100 million first close later in 2026 as it continues to build out its institutional offering.
By introducing a new asset class designed around both utility and liquidity, Tok-Edge is positioning itself at the intersection of traditional fund structures and blockchain-native innovation, reflecting broader efforts to reimagine how capital formation and asset management operate in digital markets.
Dan Burgin
U.Today Editorial Team
