Digital asset futures platform ErisX has been given the green light by US authorities to clear physically delivered cryptocurrency futures on its marketplace.
The Commodity Futures Trading Commission (CFTC) granted ErisX a derivatives clearing organisation (DCO) license, meaning the ErisX clearinghouse will be able to provide clearing of digital asset futures contracts traded on its soon-to-launch derivatives market.
“ErisX is unique in that for our digital asset market, we have divided the trading and settlement functions using traditional DCM (exchange) and DCO (clearing) models,” said Thomas Chippas, CEO of ErisX. “This reflects the structure that institutional investors expect from other asset classes and will help drive these markets toward greater relevance and accessibility.”
ErisX plans to initially provide trading in Bitcoin, Litecoin, Ethereum and Bitcoin Cash, with futures contracts on each that will be physically delivered. In December, the firm gained a $27.5 million investment from major financial organisations including Fidelity Investments and Nasdaq Ventures.
Fidelity and Nasdaq joined other major institutions that have already backed the crypto venture with investments, including Virtu Financial, DRW Venture Capital, Cboe Global Markets and NEX Group (now part of CME Group).
“Our clearinghouse is guided by a long-standing regulatory framework that protects participants and market integrity; and we are applying these same regulatory principles to our recently-launched spot market as well,” Laurian Cristea, general counsel at ErisX, commented.
“Obtaining the DCO license is the second key enterprise goal we achieved this year, after launching our spot market. When futures on digital assets launch later this year we will offer the market a single unified platform for both spot and futures.”