LedgerX is ready to launch bitcoin futures contracts. The CFTC (Commodity Futures Trading Commission), the body that regulates derivatives in the US, has granted approval after almost 8 months of waiting.
The request for physically-settled futures was made by LedgerX in November 2018 and since then the New York-based company has worked daily with the CFTC to receive this approval.
LedgerX already boasts two important licenses: the Swap Execution Facility (SEF) and the Derivatives Clearing Organization (DCO). An official date has not yet been announced, but as of tomorrow, any day is suitable for the launch of the LedgerX Bitcoin futures.
LedgerX first provider of Bitcoin futures in the US
As confirmed by Chief Operating and Risk Officer Juthica Chou, the company will be the first in the United States to allow the trading of physical bitcoin futures.
Unlike cash-settled futures, offered for example by the Chicago Cboe and CME exchanges, by purchasing physically-settled futures the buyer receives the commodity (in this case bitcoin) when the contract expires and not the cash equivalent.
LedgerX has been allowing the trading of similar products since 2014 and has a long experience in this field that has certainly influenced the decision of the CFTC.
Several other companies, including Bakkt, Seed CX and ErisX, have been awaiting CFTC approval for several months. Bakkt CEO Kelly Loeffler recently explained that the company is working closely with the US Commodity Futures Trading Commission (CFTC).
This approval means that LedgerX will be able to offer these products to everyone and not just institutional customers. The new futures will be made available through a new platform called Omni that will support the trading of derivatives, options and futures for retail users.