LedgerX, a bitcoin derivatives exchange, has announced plans to join the physically-delivered crypto futures market, currently the hottest crypto market in the world. The New York-based company now joins the list of similar products, such as Bakkt, ErisX, Seed CX, and CoinFLEX, which are waiting to receive regulatory approval.
— LedgerX (@ledgerx) 16 апреля 2019 г.
Last week, the company released a statement to inform the public about its new platform – Omni, designed to offer its customers in United States and Singapore a way to trade bitcoin (options, spot, and futures), including custody over assets. As said in the statement, there is no timing guidance as to when the license may be issued.
The company plans to charge no fees for any trades. The proposed model is based on the notion that market makers pay all the exchange fees. As a result, the quoted price will be the final price investors pay for an asset. All settlements are physical, hence users can both deposit and withdraw Bitcoin to the account, in addition to USD.
“We are banked in the US and the application process is as streamlined as we can make it. Everything is “physically” settled, not cash settled which means you can both deposit and withdraw Bitcoin to the account, in addition to your USD,” says the company in a statement.
As seen in a tweet, LedgerX applied for a license with the U.S. Commodity Futures Trading Commission (CFTC) in November 2018. Currently, the company has two licences from the Commission – for operating an exchange and a clearinghouse. These two licenses are obtained for work with institutional investors, while the application from November is designed for the retail customers.
“We’re custodying [bitcoin] in the same way that we currently do, we’ve obviously been live and operational for more than a year and a half, and we have a license from the CFTC, the DCO license, that allows us to custody bitcoin,” says Juthica Chou, founder and Chief Operating Officer at LedgerX.
This week, Newconomy reported about the issues which face ICE’s Bakkt, as the launch is delayed due to fears within the CFTC about Bakkt’s plans to store clients’ funds in the context of security.