LedgerX Debuts First Bitcoin Savings Account Licensed By CFTC

Authored by Ana Alexandre  via CoinTelegraph.com,

Trading and clearing platform LedgerX has launched a new Bitcoin (BTC) savings product that is licensed by the US Commodities Future Trading Commission (CFTC), Forbes reported May 15.

image courtesy of CoinTelegraph

The savings product introduced by LedgerX is certified by a CFTC derivatives clearing organization (DCO) license and a swap execution facility (SEF) license. Juthica Chou, Chief Operating Officer at LedgerX said:

“Everything we do requires both the licenses. And a lot of that is intentional, because by making it a package deal we can offer a number of services to our customers in a really clear, vertically integrated way.”

The licenses permit users to earn a yield on their Bitcoin assets. Rather than just “hodling” and hoping that Bitcoin appreciates, investors can earn a fiat-based yield on their BTC by employing what is referred to as a call overwrite technique, wherein an investor deposits BTC into LedgerX, then sells a call option at a slightly longer date, with a higher strike call option.

The project is designed to simplify BTC option trading to a basic point-and-click format, so “less sophisticated” bull traders can potentially get a premium price on their holdings. The product’s interface allows users to choose the implied rate they’re anticipating to earn and the number of BTC they wish to earn the yield on. Chou said:

“This interface will definitely be skewed to the long Bitcoin holders, who will likely only deposit bitcoin and who will want to earn interest off of that Bitcoin.”

According to Forbes, during the past three months, 70 percent of the trade volume of LedgerX has come from options, with an average trade size of $60,000. The options contracts will reportedly be available for a three-month and a six-month duration, while LedgerX charges a transaction fee for each service.

Yesterday, the Chicago Mercantile Exchange launched an Ethereum reference rate and real time index to the US dollar. The rates are offered in partnership with Crypto-Facilities, a UK-based digital asset exchange, that debuted the “first regulated” Ethereum futures last week.

Comments

hedgeless_horseman NugginFuts Wed, 05/16/2018 - 13:09 Permalink

 

Yesterday, the Chicago Mercantile Exchange launched an Ethereum reference rate and real time index to the US dollar. The rates are offered in partnership with Crypto-Facilities, a UK-based digital asset exchange, that debuted the “first regulated” Ethereum futures last week.

My Ether miners keep working, day and night, 365.

hedgeless_horseman's E-Z Internet Guide to Crypto Mining for Fun, Freedom, and Fungibility

There are about as many ways to mine crypto as there are crypto currencies.  Why start by mining Ether on a GPU rig?  Because it is easy.  Also, because crypto is fungible, it is simple to trade Ether for any other crypto, like Bitcoin or Litecoin, which are not so easy to mine, because they require much more specialized equipment.  It is also very easy to switch this GPU rig to mine Monero or ZCash, once you get it up and running.

https://www.zerohedge.com/news/2018-03-07/hedgelesshorsemans-e-z-intern…

In reply to by NugginFuts

Exponere Mendaces Bitchface-KILLAH Wed, 05/16/2018 - 15:25 Permalink

The transaction rate charts say - GTFO for BCash - http://fork.lol/tx/txs

But you Ver-tards keep on pushing his bullshit, because you're fucking idiots.

No one wants your altfork, no one likes Lyin' Ver, and nobody is doing shit on your 32MB block crapchain. Better yet, the fuckers that did "upgrade" to the bigger blocks are having problems now -- https://twitter.com/verretor/status/996702463586598912

Just another shitpile from the BCash "team".

In reply to by Bitchface-KILLAH

MoreFreedom 0valueleft Wed, 05/16/2018 - 14:12 Permalink

"That sounds more like money, like it."

It also sounds like LedgerX will be leveraging and loaning out those bitcoins, meaning if borrowers of those bitcoins don't pay them back, there could be a run on LedgerX and people could lose their bitcoins.

This is like money, but I can't say I like it.  It essentially allows for the creation of bitcoins that don't really exist, and is contrary to bitcoin's appeal as a limited resource.  And frankly, I don't see why a business would borrow bitcoins when they likely can borrow fiat dollar currency from a bank, and expect to pay the loan back using inflated dollars.

In reply to by 0valueleft

RedDwarf Bitchface-KILLAH Wed, 05/16/2018 - 13:14 Permalink

"Why are tehy going to lose teihr Bitcoins?"

Let us say I own 10 BTC and the current price is $8k each.  I offer an option for people to buy my 10 BTC at $9K each in six months time.  I offer this option for $500 let us say.  You buy said option.

Now you and I have a contract.  You now have the right but not the obligation to buy my 10 BTC for $9K each at the end of the six months.  You have the right to 'call' my BTC to you.  I have the obligation to deliver the BTC to you if you exercise the option.

Now, if within that 6 months BTC remains below $9K each, you will not exercise said option and are out $500.  I made $500 and still have my BTC.  Now instead let us say during that six months BTC goes crazy and goes to $12K.  You exercise your option.  I now have $90,500 and you have my 10 BTC, which are currently worth a total of $120K.

Basically it's a bet between you and I on where the price will go and you are paying me for the privilege to play since I own the BTC.

In reply to by Bitchface-KILLAH

any_mouse slightlyskeptical Wed, 05/16/2018 - 16:35 Permalink

What they mean is "pays a periodic small amount of fiat" while holding your asset.

It is earning a small amount of fiat while a second party holds your crypto coin, while your asset is used in an option where presumably a third party could exercise the option and you would have fiat and they would have the crypto.

They could Corzine the clients and never see a courtroom.

In reply to by slightlyskeptical

cheech_wizard Wed, 05/16/2018 - 12:56 Permalink

Through passive mining from my web browser, I now own enough bitcoin to equal 25 cents in U.S. fiat.

Standard Disclaimer: Rich, I tell you, I am going to be rich.

Mustafa Kemal ZENDOG Wed, 05/16/2018 - 13:59 Permalink

"Bitcoin is, and always will be, for Fags."

This "Fag" got in with less that $10K invested a couple of years ago. Since then, BTC through APMEX has sent me a couple of full rolls of Liberty Double Eagles.

Now its all profit. When it gets up around 15K again,

this Fag will do it again. My wife is sure happy. She almost thinks Im smart

In reply to by ZENDOG