New York-based LedgerX has received approval from the Commodity Futures Trading Commission (CFTC) to offer physically settled Bitcoin futures contracts. This is according to an announcement made earlier today.

The CFTC said that it had approved LedgerX application for a designated contract market (DCM) license and this means the firm is free to offer the new Bitcoin futures contracts. This makes LedgerX the second company to receive such approval. Already we know that the likes of Bakkt, ErisX and Seed CX have plans to enter the market.

In Bakkt’s case, their futures contracts have been self-certified however the company is waiting for the approval of the New York Department of Financial Services to gain a license for its warehouse.

Unlike the cash settled Bitcoin futures contracts that are listed by Chicago based CME and Cboe, physically settled futures stipulate that the buyer will receive the underlying asset when the contract expires rather than the fiat equivalent.

By receiving the approval of CFTC, LedgerX can now not only list these Bitcoin futures contracts but also offer its products to retail clients and not just institutional ones. However, there was no timeline that was provided for when LedgerX could start to offer the contracts.

According to Juthica Chou, LedgerX aims to be the first provider of such a product in the U.S. Speaking to a leading crypto publication she noted:

“There’s no doubt that we’re looking to be first, we’re looking to be the incumbent. We think we’re better positioned and we want to be there to serve customers of all sizes.”

Before adding:

“Ultimately the products are not that economically different than what we’re already offering … but this would open up to a broader [market].”

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