LedgerX, a crypto derivatives provider, is planning to become the first U.S. company to offer the highly coveted physically settled Bitcoin futures contracts. If this comes to fruition, then the firm will beat Bakkt to the first place, another company that has been trying to offer the same product for a while now.
The company announced yesterday that it had filed for a designated contract market (DCM) license that allows the firm to offer the product to its customers. Physically settled bitcoin futures contracts differ from cash-settled bitcoin futures in that at the end of the contract customers are supposed to receive the actual bitcoins that underlines a contract instead of their U.S. dollar equivalent.
LedgerX Is Still Awaiting Approval
According to Juthica Chou who serves as the chief risk and operating officer at LedgerX, the firm now plans to target retail investors with its new product. She told CoinDesk that the company will strive to serve customers of all sizes and will avoid restricting itself to institutional clients only.
However, the platform is still waiting for approval, and once it’s given the green light, it will offer bitcoin, bitcoin futures and bitcoin options to retail customers through a new platform that goes by the name Omni.
Omni is built on the firm’s existing infrastructure and will act as the provider of both custody and trading services.
Chou also said that Omni would utilize LedgerX’s existing institutional liquidity pool to ensure it offers retail customers a top tier experience from the first day. She went on to add that the company had always planned to launch a retail platform that had futures offerings.
“For us, this is a philosophically important move because bitcoin is available to everyone and we … really wanted to make our derivatives products available to all investors as well.”
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