LedgerX CFTC-Regulated Platform Opens Ledgersavings BTC Savings Service
LedgerX, A CFTC-Regulated Platform, Launches BTC Savings Platform
A cryptocurrency firm called Ledgerx has recently announced Ledgersavings, a new platform that will work as a service that will let the users deposit Bitcoin (BTC) and receive an interest on the deposit over time.
The company is regulated by the Commodity Futures Trading Commission (CFTC), so you can be confident that it is no scam. The company has explained that it will allow the clients to gain an annualized return of about 16 percent. The returns will be guaranteed even if the market is not appreciating the value of the Bitcoin.
The Ledgersavings Launch
Ledgerx received the permission of the CFTC in May to work as a regulated clearinghouse, options exchange and digital currency exchange. After that, the company announced Ledgersavings for BTC. Before that, Ledgerx was already trading BTC derivatives. The CEO of Ledgerx, Paul Chou, has officially announced the platform on August 3. According to him, it will be a major service and the first one of its kind.
Chou has affirmed that he was excited to announce Ledgersavings and that would be launched at the end of the year. According to him, the first client of the initiative has invested recently and has yielded a 15 percent annual return despite the Bitcoin levels.
The Digital Currency Savings Option To Be Regulated By the CFTC
As the prices of Bitcoin are volatile, the annual rate for a 2x strike call option on the company will be 16 percent. Investors will be able to choose from a period of three, six months or a whole year. The interest will be paid in USD.
The platform will use one of the most popular options of Ledgerx: call over-writing. It works like this: the company list contracts that have a defined maturity and then pays the interest percentage in Usd up front. After that, it provides an intuitive way of monetizing the Bitcoin, which has a high volatility and is good for arbitrage. You just deposit the BTC, choose the interest rate and get the cash now.
As many people are used to holding their tokens for a good time, it can be a good idea to save money and invest in interest instead of keeping them idle. As Ledgersavings is the only CFTC-regulated interest-bearing company at the moment that offers this option, it looks like a good investment.
According to Ledgerx, Ledgersavings will support ETH in the future, too. Some other platforms like Magnr offer similar services, but they do not offer the same options, only regular interest for the funds deposited on the company.