The U.S. Commodity Futures Trading Commission has approved Ledgerx to offer physically-settled bitcoin spot and derivatives trading, previously available only to institutional investors, to retail investors of any size. Ledgerx explained that its new platform will share the same order book as the current institutional offering so plenty of liquidity is expected from day one.
New License From CFTC
The Commodity Futures Trading Commission (CFTC) announced Tuesday that it has approved the application of Ledgerx as a Designated Contract Market (DCM), effective Monday. The New York-based subsidiary of Ledger Holdings Inc. subsequently announced:
Five years and three licenses from the U.S. federal government later, we are officially licensed to offer our physically-settled BTC spot and derivatives trading to all investors.
“DCMs are most like traditional futures exchanges, which may allow access to their facilities by all types of traders, including retail customers,” the CFTC explained, adding that these platforms “may list for trading futures or option contracts based on any underlying commodity, index or instrument.”
Bringing Institutional Platform to Retail Investors
Following Monday’s approval, Ledgerx CEO Paul Chou confirmed that his platform is now approved to offer bitcoin spot and derivatives contracts, including futures and options, “to retail clients of any size.” The CEO previously revealed that his company “quietly applied” for this license last November.
Founded in 2014, Ledgerx is also registered with the CFTC as a Swap Execution Facility and a Derivatives Clearing Organization. Until Monday, it was only approved to offer services for institutional crypto trading, typically for those with $10 million in assets or higher, Chou described, emphasizing:
But bitcoin was not designed for just institutions.