Beating Bakkt? LedgerX Gained CFTC Approval in Physical-Settled BTC Futures

The Commodity Future Trading Commission (CFTC) approved the cryptocurrency asset management platform – LedgerX to offer physical settled BTC futures.

According to the announcement, LedgerX is registered as a designated contract market (DCM) from 24 June 2019. LedgerX will be required to comply with all the applicable provision of the Commodity Exchange Act (CEA) and Part 38 of the CFTC’s regulations.

For physically settled futures, a buyer can receive the underlying commodity when the contract expires, rather than the fiat currencies in the cash settled bitcoin futures listed by the CME and Cboe. LedgerX also announced on its tweet that customers will be paid in cryptocurrency when the contract expires.

Supported by Intercontinental Exchange (ICE), Bakkt initially planned to launch its physical settled BTC future last November. They are currently seeking approval from the CFTC in launching physical settled BTC futures. The main concern for CFTC is the storage of tokens to avoid possible theft and manipulation, which Bakkt have neither bank nor trust company to deposit their customer funds.

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