LedgerX, a clearing and trading platform, announced it launches a new Bitcoin savings product licensed by the US Commodities Future Trading Commission (CFTC), reported Cointelegraph on May 16.
LedgerX’s new Bitcoin savings product is certified by a CFTC derivatives clearing organization (DCO) license and a swap execution facility (SEF) license.
The Chief Operating Officer at LedgerX, Juthica Chou mentioned,
“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.”
The project’s licenses give access to bitcoin stakeholder to earn a yield on their assets. With a method called overwrite technique, instead of holding your Bitcoin assets and hoping it will appreciate, investors can earn a fiat-based yield on their Bitcoin. Investors will deposit Bitcoin into LedgerX and have a higher strike call option since it sells a call option at a longer date.
The main purpose of this initiative is to facilitate BTC option trading to a point-and-click method. Users will be able to choose the amount of Bitcoin they wish to earn the yield on and the implied rate they’re planning to receive.
“This interface will definitely be skewed to the long Bitcoin holders, who will likely only deposit bitcoin and who will want to earn interest off of that Bitcoin.”