LedgerX Launched This Week, Why It’s Important for Cryptos and Bitcoin
You might have heard of the name LedgerX before. Back in July it became the first institutional trading and clearing platform to receive CFTC approval to clear and settle derivative contracts for digital currencies.
There wasn’t a lot of certainty on when they would go live. But it happened this week. LedgerX did a ‘soft launch’ and did swaps and options trades worth over $1,000,000.
That’s exciting. LedgerX is officially open for business.
LedgerX believes that digital currencies will coexist with fiat currencies. And that means we’ll need derivatives for digital currencies as we do with fiat, so people and institutions can manage the volatility.
I have to give LedgerX CEO Paul Chou credit as he identified regulatory compliance a key component from the beginning and specifically targeted the CFTC. Also, he hired Ananda Radhakrishnan, former Director of the CFTC’s Division of Clearing and Risk.
It’s a distinct advantage to have the CFTC’s regulatory approval. The CBOE is the only other firm I know to have CFTC approval. As far as I know they haven’t launched yet.
LedgerX has some other advantages. Per CEO Paul Chou said they have relationships with several top tiers banks with combined assets of over $500 billion. I also like that they build everything in-house, from exchange to clearing to risk software.
Chou also says the company is well funded, enough to operate for many, many years. That’s good to hear.
They also plan to expand globally and are currently working with international regulators for equivalent arrangements like the one they have with the CFTC.
I like what I see. So what does it all mean?
It means there’s BIG money coming to crypto. Like really big. The top 50 asset managers in the world are estimated to manage $76 trillion.
Just 1% of that is over 4 times larger than the entire crypto market right now.
This will take some time to get rolling, but get ready for the fireworks.
For more on cryptos follow me @g-dubs and on SteemFollower
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The gains after the next dip will be real. Great post!
Thanks!
This is the beggining of big investments groups entering the market.
Thanks for the post
Agreed, thanks for reading!
Great post like it and upvoted!
Thanks!
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Thanks G-Dubs, everyone's talking about Bitcoin Gold, but I think this news and the recent listing on Nasdaq Sweden is much bigger. Institutionals don't care about Bitcoin Gold. My broker is the biggest ECN forex broker in the world and they've just listed Eth, Dash and LTC contracts on top of their bitcoin offering. The big money is coming.
Agreed the big money is coming. Take that BGold and put it into BTC!
Daily Learn some new from your post. Love to read it.
Thank you!
wonderful post and narrative. Thank you for sharing!
Thanks!
@g-dubs, thanks for the wonderful information and for enlightening us about future of crypto curriency. I upvoted your post and keep up with the good job
Thanks!
You are most welcome... Keep up the good work, i followed you
I give you 100% upvote ok now .please upvote and follew me please
Cheers!
I love doing the math on how much money big banks and asset managers have and comparing it to the crypto market like you did at the end there, it really puts into perspective just how much room there still is to grow. The best part about the growth we're seeing right now is that this is only the beginning!
Yea, those are fun exercises.
It's funny, people worry about forked coins and how cryptos can be 'unlimited' (a weak argument imo)... but look at the pile of fiat out there.
I'd rather own cryptos and hard assets.