LedgerX stands as a regulated US-based crypto derivatives exchange and clearinghouse. While many players within the traditional finance industry have opted to move into the crypto space, LedgerX has decided to move into the traditional finance space, instead.
Moving From Crypto Into Traditional Finance
The exchange has recently gained the approval of the US Commodity Futures Trading Commission (CFTC) in order to trade in futures, options, and swaps. As well as serve as a clearinghouse.
LedgerX, based in Delaware, had asked for permission by the CFTC back in January of this year, over whether or not it could move beyond digital currency products.
LedgerX has gone on record to describe itself as the first exchange listing and clearing physically-settled, fully collateralized Bitcoin swaps and options for the institutional market to be federally regulated.
Tapping Into A Trillion-Dollar Industry
It should be noted, however, that a clearinghouse stands as part of an exchange acting as an intermediary between both the sellers and buyers. This is done in order to help finalize trades at large. With this, it ensures that both sellers and buyers fulfill each of their respective obligations. This stands similar to how home sellers and home buyers first put the house titles and money within an escrow account, at first.
With its registration now amended, LedgerX can try to capitalize within the US derivative market, offering various derivative products to a trillion-dollar industry.
Crypto Steadily moving Towards Mainstream
LedgerX had originally launched its exchange back in 2017, after gaining the relevant approvals from the CFTC. According to the exchange itself, it had managed to execute more than $1 billion in crypto trades and swaps within the first week alone.
At that time, Bloomberg had already heralded LedgerX’s popularity as a sure sign that the crypto industry at large was edging closer to mainstream integration. With today’s announcement, the distinction between traditional finance and crypto finance gets blurred just that little bit more.
It’s no secret that the crypto space at large is barreling towards mainstream integration. Soon, it will stand as a facet of the finance space, instead of being seen as some sort of fringe-finance tool. As it stands now, China is in the lead in the race to create a Central Bank Digital Currency (CBDC), which will see the crypto space be propelled towards the mainstream at even quicker speeds. Crypto is here to stay, though it might not look like many envision it to be, with the massive amounts of regulation around it.