LedgerX Officially Opens Physically Delivered BTC Options and Custody Ahead of Bakkt’s Launch
US-regulated bitcoin derivatives exchange and clearinghouse, LedgerX has officially launched its physically delivered bitcoin [BTC] options and custody ever since it got the Designated Contract Marketing License (DCM) from the Commodities Futures Trading Commission (CFTC) reports The Block.
The aimed target rests in ensuring that retail investors have been tended to. As per the firm’s statement, the OMNI platform is what supports retail investors – whether this implies swaps (performance-based rather than an asset), options and futures. That said, institutional investors are encouraged to use said services as well anyone else who’s interested.
The news outlet spoke to the firm back in April, who shared that they want to have a competitive advantage in offering a bitcoin futures product of this sort.
The route taken in obtaining said licenses has been assumed to carry some limitations. In particular, established contracts are trusted as being “fully collateralized”, which means traders could potentially be hindered from margin trading.
“Not only are they delivered physically in the sense that our customers can get bitcoin after futures expires, but also they can deposit bitcoin to trade in the first place. Cash-settled is cash-in and cash-out, we’re bitcoin-in and bitcoin-out.”
The CEO also emphasized that traders will no longer need to use the U.S banking system to deposit bitcoins. This is primarily because of the nature of it being
“physically-settled,” which Chou believes is “one of the most unique cases for bitcoin.”
When speaking about the OMNI platform, Chou said:
“[The platform] is really going to be a new product for retail that is going to be unique in that it’s going to be incredibly simple. It is going to make available to the retail public all sorts of ability to trade bitcoin, whether it’s spot, futures or options and we have a lot of things in the pipeline.”