Tassat Gets CFTC’s Nod to Offer Physically-Settled Bitcoin Derivatives

The firm is planning to launch a crypto derivative exchange in the US.

Tassat has gained approval from the US Commodity Futures Trading Commission (CFTC) to offer a swap execution facility (SEF).

Officially announced on Thursday by the market regulator, the blockchain company is now planning to launch physically-settled Bitcoin margin swaps.

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The SEF registration was transferred by the regulator from trueEX LLC to Tassat on November 6, around four months after the two companies reached an “agreement in principle.”

“TrueEX and Tassat met the requirement for transferring a SEF registration by demonstrating that Tassat will be in compliance with provisions of the Commodity Exchange Act and CFTC regulations applicable to SEFs after the registration is transferred. There are currently 19 registered SEFs, including Tassat,” the official announcement by CFTC stated.

Apart from Tassat, LedgerX also gained a similar license from the futures regulator in 2017. TrueEx first gained the license in 2016.

Targeting a lucrative market

Though the plans with the license are set, the company did not disclose any launch date of its crypto-based services yet. Tassat is already in talks with institutional participants and also initiated testing its products.

Founded in 2018 as treuDigital, the company worked with multiple players in the industry to implement crypto-based services. Rebranded in September, the company shifted its focus in the crypto derivative sector and was planning to establish a digital asset derivatives exchange in the United States.

Crypto derivative products are becoming very popular in the global market, including the United States. Intercontinental Exchange-backed Bakkt, which offers physically-settled Bitcoin futures, recently saw a massive surge in its trading volume.

Meanwhile, the Securities and Exchange Commission (SEC) is still resistant towards Bitcoin exchange-traded products (ETFs) and rejected the proposal of Bitwise for the same last month.

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