-regulated crypto derivatives and clearing platform LedgerX is eyeing the launch of a physically-settled () contract, the company confirmed to Cointelegraph on April 16.
LedgerX, which is overseen by the U.S. (CFTC), has applied for a designated contract market license that would allow it to launch the new futures product.
Whereas the futures contracts currently listed on are ultimately settled in fiat, a physically-settled version would see traders paid out in upon contracts’ expiration.
According to LedgerX co-founder Juthica Chou, the license application — reportedly first filed in November 2018 — is focused on bringing the product to a retail investor market.
“We’ve long had the goal to expand the range of we can serve beyond our institutional base — it’s the natural next step for us. Omni, by interfacing with our existing institutional liquidity pool, will offer retail a top tier experience from day one.”
As part of a wider re-orientation, LedgerX reportedly plans to launch a retail-focused version of its derivatives platform, dubbed “Omni,” which would list futures, options and swaps and provide clearing and custodian services based on LedgerX’s existing infrastructure.
Amid ongoing talks with regulators in regard to the prospective license, Chou stated that:
“I think at this current time we don’t see the demand growing among really large institutions and banks. We are still a $85 billion market cap for — really just the size of a large stock. Right now we see the opportunity towards the other end of the spectrum.”
As previously , the CFTC currently remains in talks with the yet-to-be-launched institution-focused platform — by New York Stock Exchange operator Intercontinental Exchange — which has its sights on its own physically-settled futures product.
Other players hoping to launch physically settled futures include and , both institution-oriented.
This January, LedgerX released its first price volatility index, having reportedly the first ever CFTC-licensed savings product in May 2018.
Published at Wed, 17 Apr 2019 06:07:53 +0000
