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Crypto Greenlight: US Regulator Opens Door for ErisX Bitcoin Futures

July 02, 2019

The U.S. Commodity Futures Trading Commission (CFTC) has granted crypto derivatives provider ErisX a clearinghouse organization (DCO) license. Along with the company’s designated contract market (DCM) license, ErisX can now launch fully regulated crypto futures contracts. They will be physically settled in Bitcoin.

According to the official announcement,

“Under the DCO order, Eris will be authorized to provide clearing services for fully-collateralized virtual currency futures. Eris’ indirect parent company, Eris Exchange, LLC, is registered with the CFTC as a designated contract market.”

As a registered clearinghouse, ErisX will offer the clearing of digital asset futures contracts traded on ErisX’s regulated derivatives market, which will launch later this year. Laurian Cristea, general counsel at ErisX, says the new license is the company’s second key enterprise goal after launching their spot market at the end of April.

“When futures on digital assets launch later this year we will offer the market a single unified platform for both spot and futures.”

The Chicago-based exchange is backed by TD Ameritrade, DRW Holdings, Cboe Global Markets, CMT Digital, Consensys, Nasdaq Ventures and Pantera Capital, among others. Says Don Wilson, chief executive officer of DRW,

“By establishing a marketplace and developing infrastructure typically associated with traditional markets, ErisX has eliminated many of the obstacles institutional investors face in accessing digital assets. This is another step in the development and maturation of the markets.”

The CFTC approval, granted on Monday, marks the second DCM license issued for crypto products within a week. LedgerX, a US-regulated Bitcoin derivatives exchange and clearinghouse, got the go-ahead on June 25th to launch physically-backed Bitcoin futures contracts.

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