Ethereum moves closer to the US Trading System
The second largest cryptocurrency in the world just made an important small step towards instructional trading in the US. ConsenSys, a blockchain application startup based in New York recently announced that it is creating a partnership with TrueDigital. This company is an affiliate of trueEx and works inside of the online interest rate swap marketplace. The goal of this partnership will be to develop a benchmark price of ether, the digital coin of the ethereum cryptocurrency.
The two companies announced that they are planning to design a target reference index that would be used for the price of ETH. This is the initial step needed for the same cryptocurrency to become available to the institutional investors. The news comes alongside with the trueEx announcement that the same company is planning to start up a derivatives marketplace that will be used for cryptocurrency assets. The first product is most likely be a bitcoin contract related to the trueEx’s swap trading platform, which will be promoted under the brand of TrueDigital. The same contract is right now waiting for the say from the CFTC (Commodity Futures Trading Commission) in the US.
This development came about from the renowned interest in digital currency-related derivatives products. This interest is mainly coming from the institutional investors, as the two firms stated. Earlier in 2017, the CFTC authorized trading of BTC futures for CBOE (Chicago Board Options Exchange) and CME Group. The ETH development is still in its early phase but the approval will likely kick-start the process of making exchange products that use ETH and its official price index reference.
The founder of TrueDigital explained that many institutional investors are ready for a liquid and regulated marketplace that would allow them to gain access to digital currency and commodities. Right now, however, the marketplace is lacking the infrastructure, foundation, and platforms that would allow these investors to come into the same ecosystem they learned to expect in all other markets.