Tok-Edge Whitepaper Proposes New Cryptoasset Category: The Redemption Token
London, United Kingdom, June 2nd, 2026, Chainwire
Tok-Edge has published its whitepaper explaining the Redemption Token, a new cryptoasset category designed for capital to operate in permissionless blockchains. The framework combines public transferability with a redemption mechanism that references the value of underlying on-chain capital, unlocking a frontier of composable use cases in decentralized finance for token holders and protocol builders.
The whitepaper, titled “Tok-Edge: A Permissionless Cryptoasset for Capital,” introduces the Redemption Token as a blockchain-based instrument that functions as a “key” – required to be delivered and burned as a condition for redeeming capital – while conferring no economic, governance or ownership rights. By design, Redemption Tokens are fungible, permissionless and tradeable on public blockchains, enabling secondary market price discovery.
Tok-Edge argues that no existing cryptoasset category satisfies what it defines as the “duality problem”: combining permissionless transferability on public blockchains with a mechanism that references publicly verifiable on-chain capital value. The whitepaper contrasts Redemption Tokens with utility tokens, governance tokens, stablecoins and tokenized securities, positioning it as the first category designed for capital to operate in permissionless markets.
“The Redemption Token is the first permissionless cryptoasset since stablecoins, which is now a $300 billion category, to have a defined function,” said Raees Chowdhury, CIO and Co-Founder of Tok-Edge. “With Tok-Edge, we are both pioneering this new category and launching the first product to apply our model, in the same way MicroStrategy pioneered the digital asset treasury model and went on to dominate the market it created. We intend to do the same.”
The paper details a rule-based issuance and burn mechanism tied to subscriptions and redemptions of fund shares for capital value. Under the model, authorized investors in the Tok-Edge Fund – the first product to utilize the Redemption Token – will be airdropped Tokens alongside fund shares at subscription, with redemption of fund shares requiring the pro-rata return and burn of the Tokens initially received.
The whitepaper further outlines a range of use cases for Redemption Tokens in decentralized finance, including liquidity provision, lending and yield protocols. Tok-Edge explains that the model enables new forms of composability for capital – combining the price discovery of public markets with the verifiable on-chain capital and infrastructure of fund structures.
The release follows Tok-Edge’s recent emergence from stealth, during which the firm confirmed a $15 million valuation and outlined plans for an institutional crypto hedge fund targeting a $100 million first close later in 2026. The company previously disclosed that its fund structure would incorporate the Redemption Token model described in the newly published whitepaper.
About Tok-Edge
Tok-Edge is a digital asset financial services firm building institutional-grade products focused on liquid crypto assets and decentralized finance strategies. The company combines traditional finance practices with blockchain infrastructure and is the creator of the Redemption Token, a new category of cryptoasset.
For the Full Whitepaper: https://www.tok-edge.com/redemptiontoken-pdf
Learn more at: www.tok-edge.com/token
*Cayman Islands domiciled investment fund regulated as mutual fund by the Cayman Islands Monetary Authority. In the UK, Tok-Edge intends to operate as an Appointed Representative of an FCA-authorised investment manager.