LedgerX launches physically settled bitcoin futures contracts
LedgerX has announced on Wednesday that it has launched the first physically settled bitcoin futures contracts, both for individuals as well as for institutional investors. By doing so, LedgerX managed to succeed where Bakkt, backed by the Intercontinental Exchange, and ErisX, backed by TD Ameritrade-backed have failed so far.
According to LedgerX's CEO Paul CHou:
“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.”
This makes it possible for investors to participate without going through the US banking system:
“If you imagine somebody that deposits bitcoin, they would not have to use the U.S. banking system at all. That’s why physically-settled is very important,” he said. “I think [it’s] one of the most unique use cases for bitcoin, where you’re using cryptocurrencies as the only collateral.”
The launch of the first ever physically settled bitcoin futures contracts is excellent news for the bitcoin ecosystem, which will contribute to the ever increasing financialization of bitcoin, which Austrian economist Trace Mayer coined as the 6th network effect (out of a total of 7 network effects).
Cryptocurrency exchange Kraken acquires Interchange
Cryptocurrency exchange Kraken has announced on Wednesday that it acquired Interchange, an accounting, reconciliation and reporting service provider. With this acquisition Kraken aims to provide institutional investors better tools to monitor and report their crypto portfolios.
Jesse Powel, Kraken CEO stated: “I couldn’t be more excited to welcome Dan, Clark and the Interchange team to Kraken. What’s great about Interchange is that it makes accounting, trade reconciliation and reporting so much easier for institutions and individuals trading on Kraken, so our clients can stay focused on tapping the tremendous value that cryptocurrency markets offer.”
Bitcoin wallet and blockchain explorer Blockchain launches PIT
Bitcoin wallet and blockchain explorer provider Blockchain just launched its first custodial institutional-grade crypto trading platform.
According to Blockchain’s head of retail products Nicole Sherrod, the custodial exchange, called The PIT, boasts the fastest matching engine in crypto and can connect to non-custodial Blockchain wallets for nearly instant transfers.
The PIT's matching engine is able to achieve extremely high speeds by using the Equinix LD4, one of the most reliable and lowest-latency data centers in the world. LD4 is the computing infrastructure underpinning many of Europe’s largest global finance, technology, and media companies.
The PIT will become another major fiat to crypto on-ramp, further strengthening the bitcoin ecosystem wordlwide.