Ethereum’s powerhouse has entered into a partnership with an affiliate of trueEX LLC, a regulated swap execution facility catering to the institutional marketplace.
TrueDigital Holdings (TDH) and ConsenSys aim to develop a benchmark rate for ethereum and to develop the infrastructure needed for the broad adoption of digital assets by the institutional community, trueEX said in a statement.
“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,” Sunil Hirani, founder of TDH, said before adding:
“But the marketplace is sorely lacking the necessary foundation, infrastructure and platforms that institutional investors have come to expect in other important markets.”
They are now working on developing that infrastructure, announcing plans to launch a regulated derivatives marketplace for digital assets aimed at institutional investors.
TrueEX will start with a contract for bitcoin non-deliverable forwards (NDFs), which are short-term futures settled in dollars and traded on their platform pending a green light from CFTC.
They then seemingly plan to add ethereum after the establishment of the benchmark and wider infrastructure. So potentially competing with Cboe, which has hinted at ethereum futures.
TrueEX says they have executed over $9.7 trillion in trading volumes and $20.7 trillion in post-trade processing services since its launch.
They specialize in swap execution, a somewhat complex financial instrument mainly useful to institutional investors that can swap a competitive advantage or use them to simplify exchanges of currencies and assets.
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, stated:
“NDFs on digital assets are the logical next step for institutional investors who are seeking exposure to Bitcoin and other digital currencies.”
Suggesting Wall Street’s crypto infrastructure continues to grow, now seemingly expanding to ethereum and towards more complex financial products for bitcoin.