Cryptocurrency asset management platform LedgerX has launched a new bitcoin savings product aimed at serving bitcoin investors who want to buy—and hold.
Launched today, the first bitcoin savings accounts to be offered by a company with two different CFTC licenses allow investors to earn a yield in fiat on their bitcoin holding. Instead of just sitting on the cryptocurrency and hoping it appreciates, the LedgerX Savings product lets investors—or savers as the case may be—do what’s called a call overwrite.
The investing technique, where a person deposits bitcoin to LedgerX then sells a call option at a slightly longer date, with a higher strike call option, has proved to be one of the New York City-based startups most popular services using the existing options service.
But with the new savings product, that process is reduced to its most basic point-and-click functionality, designed in part to make it easier for less sophisticated bitcoin bulls to potentially receive a premium in U.S. dollars for selling the option.
As the CFTC looks to take a more aggressive stance toward some unlicensed bitcoin companies, the LedgerX productthat requires both a CFTC derivatives clearing organization (DCO) license and a swap execution facility (SEF) license signals an increasing level of sophistication being offered to bitcoin users.
“Everything we do requires both the licenses,” said Chou in an interview at her New York City headquarters. “And a lot of that is intentional, because by making it a package deal we can offer a number of services to our customers in a really clear, vertically integrated way.”
The new savings interface lets a user select the implied rate he or she is looking to earn and the number of bitcoins he or she hopes to earn the yield on and then submit it to the same LedgerX matching engine that powers the existing bitcoin options product.
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