We Play Coins

LedgerX: first physically-settled bitcoin futures

LedgerX: first physically-settled bitcoin futures
By We Play Coins
Added on Aug 01, 2019

LedgerX has beaten its competitors to launch the first physically-settled bitcoin futures contracts in the U.S. The race was between Intercontinental Exchange’s Bakkt and TD Ameritrade-backed ErisX. This was announced in an exclusive report by CoinDesk.

The news that is most useful to regular folk is that LedgerX is offering the new platform to both institutional and retail investors, allowing anyone who can pass know-your-customer (KYC) processes to trade the contracts, not just institutional clients with millions in assets.

LedgerX CEO Paul Chou told CoinDesk that retail customers can trade the product using his company’s new Omni platform, which recently went live, while institutional clients can trade futures as with any of LedgerX’s other products.

The difference between LedgerX and other platforms is that it is the first to offer physical futures, meaning customers receive the actual bitcoin they bet on when the contracts expire, rather than the cash equivalent.

Investors can also buy using Bitcoin and don’t need to put fiat currency in the form of US dollars in the system. This could be the first time that a regulated company is able to allow customers to deposit bitcoin as collateral for a contract. Customers are not slowed down by bank transfers to get started thanks to the Omni platform.

“Not only are they delivered physically in the sense that our customers can get bitcoin after the 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.”LEDGERX CEO PAUL CHOU

What is Omni?

Omni is the LedgerX powered platform for trading in physical bitcoin. That means that you are paid in Bitcoin rather than fiat currency for options bought or traded. This is the first of its find platform for trading options with bitcoin.

Requirements to use the Omni platform –

  • US or Singaporean Citizen
  • KYC compliance check
  • A $10,000 wire or 1 btc is required to open an Omni account

Early Birds will (the first 1,000 qualified applicants) will gain Cerulean status on Omni.

What is LedgerX?

LedgerX is a US-regulated trading platform for physically-settled digital currency derivatives.

LedgerX is the first federally regulated exchange and clearing house to list and clear fully-collateralized, physically-settled bitcoin swaps and options for the institutional market. The U.S. Commodity Futures Trading Commission (CFTC), which regulates virtual currency derivatives, oversees LedgerX’s registration as a swap execution facility (SEF) and derivatives clearing organization (DCO).

The LedgerX management team comprises Goldman Sachs, MIT and CFTC alumni, who bring financial expertise, technical talent and regulatory experience to the firm. Ananda Radhakrishnan, former Director of the CFTC’s Division of Clearing and Risk and current Vice President of the Center for Bank Derivatives Policy at American Bankers Association, and Carl Mahler, Partner at Gelber Group, currently sit on the LedgerX Board of Directors. Mark Wetjen, Managing Director at Depository Trust & Clearing Corp (DTCC) and former Commissioner of the CFTC, currently sits on the board of directors of Ledger Holdings Inc., the parent company of LedgerX.

On May 22, 2017, Ledger Holdings Inc. announced the closing of $11.4 Million in Series B financing led by Miami International Holdings Inc. and Huiyin Blockchain Venture Investments. Early investors include Google Ventures and Lightspeed Venture Partners.

With Omni, LedgerX becomes the first physically-settled bitcoin futures for retailers. This puts it miles ahead of the competition.