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trueEX to launch regulated marketplace for digital assets

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trueEX plans to launch a regulated derivatives marketplace for digital assets with the initial contracts being for bitcoin non-deliverable forwards (NDFs) settled in USD.

They will be listed under the “trueDigital” brand on the existing trueEX swap execution platform, pending review with the Commodity Futures Trading Commission.
 
Digital assets, including bitcoin and Ether, now comprise in excess of USD430 billion in market capitalisation. While attracting greater institutional interest, the marketplace has been lacking the regulatory and technology building blocks needed for institutional involvement and participation.
 
The trueDigital contracts are subject to a licensing and services agreement with a newly-formed affiliate of trueEX, trueDigital Holdings (TDH), that will provide product development, and act as the sales and marketing arm for the new products.
 
At the same time, TDH will enter into a strategic partnership with the leading blockchain venture studio, ConsenSys, to develop a benchmark rate for Ether and the infrastructure needed for the broad adoption of digital assets by the institutional community. Ether is the second largest digital asset after Bitcoin.
 
“Institutional investors and commercial partners are ready for a regulated and liquid marketplace to gain exposure to and hedge these increasingly important digital currencies and commodities, but the marketplace is sorely lacking the necessary foundation, infrastructure and platforms that institutional investors have come to expect in other important markets,” says Sunil Hirani, founder of TDH. 
 
“NDFs on digital assets are the logical next step for institutional investors who are seeking exposure to Bitcoin and other digital currencies. Sunil is a proven innovator in financial products and market infrastructure, and one of the earliest advocates for the use of digital assets in institutional finance. We’re looking forward to working with his team at trueDIGITAL,” says Brooks Dudley, Vice President of Risk at ED&F Man Capital Markets, the first FCM with plans to offer prime brokerage services for digital asset forwards on trueDIGITAL.

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