Tok-Edge, the world’s first regulated crypto hedge fund, has introduced Redemption Token, a novel crypto asset category developed by the firm, which will be first implemented with its new fund. The company also disclosed a $15 million valuation.
Founded by professionals from both traditional finance and crypto, Tok-Edge recently came out of stealth after raising approximately $1.5 million from Marcus Meijer, an experienced GP investor and founder of a $10 billion AUM fund.
Meijer, along with a group of investors, is expected to anchor the fund with up to $10 million as Tok-Edge begins fundraising from institutional allocators including family offices, venture investors and crypto-native funds. The leadership team brings combined experience managing over $950 billion in AUM across institutions such as CVC Capital, Bain Capital, KKR, BCG, Tufa and GoCoin.
Redemption Token
The Redemption Token creates a tokenized representation of hedge fund shares that can be used, traded, and redeemed on blockchain networks. Tokens are distributed to investors on a pro-rata basis and must be burned to redeem the underlying fund shares at net asset value.
The system uses a mint-and-burn mechanism to maintain alignment between token circulation and fund activity, offering liquidity, transparency, and compatibility with decentralized finance protocols.
By combining institutional-grade fund practices with blockchain composability, the Redemption Token aims to enable on-chain functionality without compromising regulatory compliance or investor protections.
“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, CIO of Tok-Edge. “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.”
The fund’s initial raise is limited to $21 million, matching the token generation event, and investors receive one Redemption Token per dollar invested. Allocation decisions are expected to be completed over the next few months as the fund pursues a $100 million first close later in 2026.
“The Redemption Token model introduces an architecture that separates the tradable asset from the legal instrument that represents ownership. We are pleased to support Tok-Edge as it develops a structure that could broaden the institutional market for digital asset products,” Eric Benz, former CEO of Changelly, early investor and Board Advisor to Tok-Edge, stated.
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