London-based Tok-Edge, the first regulated crypto hedge fund, has unveiled its novel Redemption Token. This new crypto asset category, developed by the firm, will debut with its latest fund, which has achieved a valuation of $15 million.
Founded by experts from traditional finance and crypto, Tok-Edge emerged from stealth after raising $1.5 million from seasoned investor Marcus Meijer. Meijer and other investors are poised to commit up to $10 million as Tok-Edge initiates fundraising from institutional allocators, family offices, and venture investors.
The Redemption Token transforms hedge fund shares into a tokenized format, tradable and redeemable on blockchain networks. Investors receive tokens pro-rata, which must be burned to redeem underlying fund shares at net asset value. This mint-and-burn mechanism ensures liquidity, transparency, and compatibility with decentralized finance protocols.
"The Redemption Token is a new crypto asset that acts as a key for fund investors to redeem their capital and can be traded freely in the secondary market for price discovery," stated Raees Chowdhury, CIO of Tok-Edge. The fund aims to integrate institutional-grade practices with blockchain technology, ensuring regulatory compliance and investor protection.
The fund's initial raise is capped at $21 million, with investors receiving one Redemption Token per dollar invested. Allocation decisions are expected within months, targeting a $100 million first close in late 2026.