LedgerX becomes First to Provide Physical Bitcoin Futures in the US?
Latest Update: U.S. Commodities Futures Trading Commission (CFTC) says LedgerX has “not yet been approved by the Commission” to offer physically-settled bitcoin futures, contradicting the company’s claims.
LedgerX looking to win the race to launch first physical Bitcoin futures when all are waiting for the NYSE affiliated Bitcoin futures exchange Bakkt to provide physical Bitcoin futures in the US.
Anyone that has a government-issued ID in the US can now trade physical Bitcoin futures contracts.
LedgerX provides futures Bitcoin trading for both institutional and retail investors, anyone who can pass the KYC (Know Your Customer) can trade on the platform, not only institutional investors with millions of funds.
LedgerX CEO Paul Chou revealed that there is a different platform for retails investors and institutional investors. Retail traders can trade via the company new Omni platform, while institutional traders can use any other LedgerX’s products.
LedgerX is not the first futures exchange but will become the first exchange to provide physical Bitcoin futures contracts. Physical Bitcoin futures contracts mean users receive the amount in Bitcoin (BTC) that they bet when the contract expires, rather than in equivalent fiat currency.
Chou further explained:
“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.”
Chou believes that physically-settled Bitcoin futures contracts will eliminate the use of the US banking system. Users did not need for the bank confirmation to deposit funds in their accounts. He further added:
“As a digital commodity, bitcoin trades 24/7/365 and our customers expect that from us, so if you trade Sunday night, the banking system did not have to be open.”
