With one eye on bringing cryptocurrency to institutional investors, New York-based financial technology company, trueDigital revealed in a press release today, plans to launch a CFTC regulated crypto derivatives exchange.
trueDigital as per the release has reached an agreement in principle with CFTC regulated exchange, trueEX LLC to acquire their Designated Contract Market (DCM) and Swaps Execution Facility registrations.
That deal is now pending the approval of the Commodity Futures Trading Commission (CFTC) and clears the way for trueDigital to unveil its planned derivatives platform.
However, the startup has already revealed that if the deal gets the required regulatory approval, then one of their first product would be physically delivered Bitcoin derivatives targeting institutional investors.
trueDigital CEO Thomas Kim in the release expressed delight at their soon-to-be-completed deal of purchasing trueEX’s CFTC registrations.
He also spoke about the impending launch of their planned crypto derivatives platform noting that adding the exchange to their ecosystem delivers a complete end-to-end offering, currently unavailable today.
That encompasses “tokenization, payments, market data, and settlement for the benefit of our clients and partners,” according to the CEO.
Meanwhile, at this point, it would be fair to point out that trueDigital’s planned crypto derivatives platforms would have a stern competition to deal with when it eventually goes live.
In recent times, ErisX and LedgerX received CFTC approval to set up physically delivered Bitcoin derivatives products. Intercontinental Exchange backed startup, Bakkt is also launching a similar offering later this month while leading cryptocurrency platform Binance plans to unveil theirs in the coming weeks.