ETH looks to institutional trading in USA
#blockchain #ETH #Lendoblog
The blockchain world continues to evolve at speed. For example, Consensys, a blockchain app startup is partnering with TrueDigital, an interest rate swap marketplace, to set a benchmark for ETH cryptocurrency as announced at Coindesk by Wolfie Zhao.
According to his report, the two firms “are planning to design a target reference index for the price of ether (ETH), the second largest cryptocurrency by total value.” The goal is to make more crypto trading products available to institutional investors. There is also a rumour, writes Wolfie, that TrueDigital is planning a derivatives marketplace for crypto assets.
Bitcoin is likely to be the first available product on the trading platform, but, it will be marketed under the TrueDigital brand. However, they are waiting for contract approval from the U.S. Commodity Futures Trading Commission (CFTC).
Why are they doing this? Because institutional investors are showing signs of being interested in crypto-related derivatives. As we know, the CFTC has already approved trading in Bitcoin futures at the Chicago Options Exchange, so it doesn’t seem like it should be a huge leap for them to approve the Consensys/TrueDigital product as well. However, we will have to wait a while to find out if that assumption is correct.
It is thought that if the Bitcoin product gets the green light then it is likely that there will be a range of products developed for Ethereum’s ETH, including an “official price index reference.”
Sunil Hirani, founder of TrueDigital said: “Institutional investors and commercial partners are ready for a regulated and liquid marketplace to gain exposure to and hedge these increasingly important digital currencies and commodities.” However, as he also pointed out, “the marketplace is sorely lacking the necessary foundation, infrastructure and platforms that institutional investors have come to expect in other important markets.”