Bitcoin Derivative in Development by Wall Street Engineers By DailyCoin
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Bitcoin Derivative in Development by Wall Street EngineersBitcoin derivative is under development by wall street engineers. Specifically, SFOX sees NDFs as a vehicle towards the expansion of crypto-related trading, and daily trading volume could potentially reach $100 million a day, according to SFOX.
The Development Process
A group of engineers and trades at the crypto prime brokerage SFOX are working on a way through which they can expand access to for banks and big investors through a bespoke derivative.
SFOX’s co-founder, George Melika, mentioned that his firm is in talks with large banks as well as market makers, such as Jane Street, towards opening a market that facilitates the trading of Bitcoin derivatives.
The main goal here is to utilize NDFs, which are non-deliverable forward contracts typically used for currency markets, to give banks the wherewithal to expose clients to Bitcoin at a greater scale through a contract agreed-upon price, all of which settles in cash.
On the Flipside
- Banks have been wary of buying or trading Bitcoin due to the concerns surrounding compliance, Know-Your-Customer (KYC) rules, and market liquidity.
Why You Should Care
SFOX essentially has more than 120 institutional clients, which allows it to expand liquidity to a market for NDFs. This could contribute to more interest in Bitcoin investments and bring the token’s value forward after its recent bearish turn.
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Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
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Bitcoin Derivative in Development by Wall Street EngineersBitcoin derivative is under development by wall street engineers. Specifically, SFOX sees NDFs as a vehicle towards the expansion of crypto-related trading, and daily trading volume could potentially reach $100 million a day, according to SFOX.
The Development Process
A group of engineers and trades at the crypto prime brokerage SFOX are working on a way through which they can expand access to for banks and big investors through a bespoke derivative.
SFOX’s co-founder, George Melika, mentioned that his firm is in talks with large banks as well as market makers, such as Jane Street, towards opening a market that facilitates the trading of Bitcoin derivatives.
The main goal here is to utilize NDFs, which are non-deliverable forward contracts typically used for currency markets, to give banks the wherewithal to expose clients to Bitcoin at a greater scale through a contract agreed-upon price, all of which settles in cash.
On the Flipside
- Banks have been wary of buying or trading Bitcoin due to the concerns surrounding compliance, Know-Your-Customer (KYC) rules, and market liquidity.
Why You Should Care
SFOX essentially has more than 120 institutional clients, which allows it to expand liquidity to a market for NDFs. This could contribute to more interest in Bitcoin investments and bring the token’s value forward after its recent bearish turn.
EMAIL NEWSLETTER
Join to get the flipside of crypto
Upgrade your inbox and get our DailyCoin editors’ picks 1x a week delivered straight to your inbox.
[contact-form-7]
You can always unsubscribe with just 1 click.
Continue reading on DailyCoin
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
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