Tap Global Group PLC (LSE:TAP) shares rose 20% to 1.5p on Monday after the AIM-listed digital finance company reported that assets under management in its Tap Earn yield product had grown 43% to more than $5 million despite a sharp fall in cryptocurrency prices over the past month.
The company said the growth was driven by net customer deposits rather than price appreciation, with Bitcoin and Ethereum both falling materially since Tap Earn's AUM was last reported at $3.5 million on 18 May.
Tap Global said the performance demonstrated the counter-cyclical characteristics the product was designed to deliver, with yield-based revenue continuing to accrue as deposits grew during a period when trading volumes across the crypto sector typically contract.
Tap Earn works by generating revenue from the spread between the gross yield the group earns through its treasury management programme and the variable rate paid out to customers, meaning income accrues on balances held rather than transactions completed.
The company also announced it had raised the customer-facing yield on supported stablecoins, digital assets pegged to fiat currencies, from up to 7.0% at launch to up to 8.0%, which it said positioned Tap Earn among the highest published rates in the retail crypto yield market.
Chief executive Arsen Torosian said every dollar of AUM added recurring yield revenue that did not depend on trading volumes, describing the past four weeks as evidence of the strategy working as intended.
The update marks the second AUM disclosure since Tap Earn launched, with the board having set out in May its intention to build a revenue base that functions across all phases of the market cycle, reducing the group's historical dependence on transactional income tied to crypto price activity.
