LedgerX Hopes To Beat Bakkt In Launching Deliverable Bitcoin Futures
Crypto derivatives platform LedgerX expects to be the first in the US to launch bitcoin futures contracts with physical delivery of the asset, writes CoinDesk.
On Monday, the company announced it is applying for a Specialized Contract Market (DCM) license, which will allow it to offer futures similar to those slated to launch on New York Stock Exchange operator Bakkt..
According to LedgerX COO Jutica Chou, access to the tool will be provided not only to institutional but also to retail investors. “We will be able to serve clients of any level, without restrictions,” she said.
LedgerX Bitcoin futures will be launched on the Omni platform, which is based on the company’s existing infrastructure, suitable for storing and trading the asset. LedgerX’s original platform received regulatory approval in July 2017.
The company filed an application for a license to list futures contracts in November 2018 and since then has been in a “constructive dialogue” with the US Commodity Futures Trading Commission (CFTC).
Previously, the CFTC issued two licenses to LedgerX: to provide services as a swap exchange and a clearing house for derivatives. Chow explained that the new license will only expand the operational capabilities of the exchange, while she is ready to start servicing futures contracts now..
To date, LedgerX provides its institutional clients, of which it has more than 200, regulated bitcoin physical delivery swaps and option products. A number of companies are also planning to launch their own deliverable bitcoin futures, including Bakkt, Seed CX and ErisX, but they all have to await regulatory approval..
“This is a natural development. It stems from the fact that we have been serving the supply market for over one and a half years. We are always happy to be first, ”added Chow..