What is in-kind remap?

In traditional finance, "in-kind" refers to the transfer, payment, or settlement of assets in their original form rather than converting them into cash or another medium. It emphasises preserving the nature of the asset being exchanged. In ETF vocabulary, in-kind redemptions allows authorised participants to redeem shares in-kind rather than in cash.

BitDSM is an on-chain effort to allow BTC stakers create and redeem their stake "in-kind" and put it to use in Ethereum's playground, without minting another asset.

The table below outlines similarities between in-kind shares and in-kind remap.

Feature	In-Kind shares	In-Kind Remap
Mechanism	Transfer of ETF shares for Native assets	Non-custodial redirection of asset control, aka, delegation
Tax implications	Avoid liquidations. Minimising tax event.	Remaps native bitcoin. Avoids conversion to a new asset
Redemptions	Orders redemptions via authorized participant	self-created/redeeemed. No intermediaries.
Applicability	ETF share redemption for underlying asset	Remap can be redeemed for underlying asset/stake
Counterparty Risk	Funds remain with custodian	Funds remain with custodian