trueEX LLC will launch a regulated derivatives marketplace for digital assets. Initially, the company will list contracts for Bitcoin non-deliverable forwards (NDFs) settled in USD and will be listed under the “trueDigital” (TDH) brand on the existing trueEX swap execution platform. The launch is pending review with the Commodity Futures Trading Commission (CFTC).
trueEX operates the first exchange approved by the CFTC as a Designated Contract Market (DCM) for swaps. As an exchange and registered swap execution facility (SEF), trueEX has executed over $9.7 trillion in trading volumes and $20.7 trillion in post-trade processing services since its launch.
trueEX points to the fact that digital assets, including Bitcoin and Ether, now comprise in excess of $430 billion in market capitalization. Institutional money has become more interested in cryptocurrencies but the market has been lacking in regulatory and technology sophisticated platforms needed for institutional involvement and participation.
At the same time, TDH said it will enter into a strategic partnership with the Blockchain venture studio ConsenSys to develop a benchmark rate for Ether and the infrastructure needed for broader adoption of digital assets by the institutional community.
Sunil Hirani, founder of TDH, said that institutional investors are ready for a regulated and liquid marketplace to access the new asset class and hedge.
“…the marketplace is sorely lacking the necessary foundation, infrastructure and platforms that institutional investors have come to expect in other important markets,” said Hirani.
Brooks Dudley, VP of Risk at ED&F Man Capital Markets, the first FCM with plans to offer prime brokerage services for digital asset forwards on trueDIGITAL, said that NDFs on digital assets are a logical next step.
“Sunil is a proven innovator in financial products and market infrastructure, and one of the earliest advocates for the use of digital assets in institutional finance. We’re looking forward to working with his team at trueDIGITAL.”
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