Bitcoin derivative in development by Wall Street engineers By DailyCoin

Bitcoin derivative in development by Wall Street engineers

A Bitcoin derivative is being developed by Wall Street engineers. Specifically, SFOX sees NDFs as a vehicle towards expanding crypto-related commerce, and daily trading volume could potentially reach $100 million per day, according to SFOX.

The development process

A group of engineers and trades from crypto prime brokerage SFOX are working on a way to broaden access to banks and large investors through a bespoke derivative.

SFOX co-founder George Melika mentioned that his company is in talks with major banks as well as market makers, such as Jane Street, to open a market that facilitates Bitcoin derivatives trading. .

The main goal here is to use NDFs, which are non-deliverable forward contracts typically used for currency markets, to empower banks to expose customers to Bitcoin on a larger scale through price. agreed by contract, which is settled in cash. .

on the reverse

  • Banks have been wary of buying or trading Bitcoin due to concerns about compliance, Know-Your-Customer (KYC) rules, and market liquidity.

Why You Should Care

SFOX essentially has over 120 institutional clients, allowing it to extend liquidity to an NDF market. This could help increase interest in Bitcoin investments and push the value of the token forward after its recent bearish turn.


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