BitPay, Circle Endorse Bitcoin Derivative Platform LedgerX for CFTC Approval

Bitpay and circle endorse ledgerx

At the end of last year, the United States Commodity Future Trading Commission (CFTC) had launched a commenting period to understand the feasibility of a Bitcoin-based derivate exchange LedgerX. Upon the extension of this course last week, financial professionals can now submit their comments until February 20.

But meanwhile, it seems like LedgerX has already garnered enough support to build up its case. Recently, notable Bitcoin companies like BitPay and Circle issued their comments in favor of this potential Derivative Clearing Organization and Swap Execution Facility. Also among the notable commenters were Lightspeed Venture Partners and Midas Advisory Group, Inc.

Bitpay and circle endorse ledgerx

BitPay co-founder Tony Gallippi backed the idea of having a market for Bitcoin options around, adding his company’s special needs for “derivatives around bitcoin (puts and calls) that can hedge against the volatility of the underlying bitcoin price.”

“We believe the CFTC should provide regulatory oversight, encourage transparency, and allow the creation of a robust derivatives market for bitcoin,” he recommended while referring to LedgerX.

Circle Head of Treasury and Trading Operations Joshua Lim also supported the idea of having a regulated Bitcoin derivative platform like LedgerX. He neatly elucidated the benefits of such derivatives: (1) to manage market risk exposure, (2) to maintain constant exposure without experiencing an outflow of the Bitcoin inventory, (3) to maintain greater-than-usual customer demand and (4) to predict future risks and make healthy hedging decisions.

“Such a platform [LedgerX],” he added, “would benefit not only Circle in the applications above but also many other natural long and short hedgers in the broader Bitcoin ecosystem — from miners, merchant processors and remittance companies to consumer on-ramps and investment firms.”

A total of 14 comments have been received until now.

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Gola Yashu

India-based IT professional Yashu Gola found Bitcoin in 2012, when he was trying to send money to one of his friends in the US. As he quotes, it was “love-at-first-sight” with the mystical work of digital currencies. He left his online advertising job to work as a full-time Bitcoin writer for forex news website Apart from covering the minute-to-minute Bitcoin events, Yashu is also an active Bitcoin trader and analyst.When not working, he is found reading and writing movie scripts, poems and songs. He is also a passionate movie buff