Author: Gan Jia Ci
Bitcoin derivatives platform, LedgerX, is expected to launch a new Bitcoin savings product for Bitcoin investors.
The new product is authorised by the Commodity Futures Trading Commission (CFTC) with two different licenses, derivatives clearing organization (DCO) license and swap execution facility (SEF) license.
Forbes reported that the licences allow Bitcoin users to earn a sum on their Bitcoin holdings. As an alternative to standing by and hoping for the cryptocurrency to appreciate, investors can now earn a yield on their assets by using a call overwrite method. Through this method, an investor can deposit Bitcoin into LedgerX and sell a call option at a somewhat longer date, with a higher strike call option.
This product is designed to streamline the trading process to a simple point-and-click layout, allowing less knowing bull traders to potentially obtain a premium price on their assets in USD.
According to Juthica Chou, a LedgerX co-founder and chief operating officer, “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.”
Chou told Forbes, “This interface will definitely be skewed to the long bitcoin holders.” She also mentioned that she “will likely only deposit bitcoin and will want to earn interest off of that Bitcoin.”
According to Forbes, 70% of LedgerX’s trade volume came from options, with the average trade size amounting to $60,000. Every month, LedgerX has achieved $30 million of notational transactions.