CFTC-Regulated Derivatives Firm Records All-Time High July Transactions

LedgerX announced that July is its best month so far, proving that interest in crypto and blockchain is not going to waver anytime soon.

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Institutional trading and clearing platform LedgerX revealed that July recorded a staggering $50 million in derivatives volume, signifying that it is the best month for the platform so far, according to CoinDesk.

Surge In Demand

Juthica Chou, President and Chief Risk Officer of the said derivatives clearing organization, told CoinDesk that the reason is that the platform launched a new Bitcoin purchasing system during the said month. The system, named “one-click Bitcoin,” serves as a one-stop shop for institutions and high net-worth individuals to purchase Bitcoin through a federally-regulated platform.

The service, built on top of the recently-launched LedgerSavings, was created in response to a surge in client demand.

Chou remarked:

“[One-click Bitcoin] was born out of a lot of the customer demand that we’ve seen. I think it’s showing that derivatives and options are really useful long-term products and they can offer killer solutions to a wide variety of participants.”

The said service is accessible to all of LedgerX’s customers, including about 130 institutions and individuals.

Fully Collateralized

ledgerxLedgerX holds a reputation as the first cryptocurrency asset management platform to have been regulated by the US Commodity Futures Trading Commission (CFTC), and that which offers physically-settled Bitcoin derivatives.

LedgerSavings, as the name suggests, is a “Bitcoin savings account” which will have a holding duration from three months up to one year, and that which could reap a 16-percent annual return. That is if Bitcoin does not double in price. If it does, then investors can expect much higher returns.

These accounts pay interest not in additional Bitcoin, but in dollars. This could hedge against losses should the value of the said cryptocurrency decline while being held in the account.
The firm doesn’t intend to stop at Bitcoin; it is also planning to add Ethereum products and is already working with regulators for an approval, which they might get since the firm assures that all of its products are fully collateralized.

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