The U.S. Commodity Futures Trading Commission granted LedgerX LLC, a cryptocurrency trading platform operator, registration as a clearing house for derivatives contracts settling in digital currencies, according to a statement by the regulators Monday. With the approval, LedgerX is set to become the first federally regulated digital currency options exchange and clearinghouse in the U.S. as interest and volatility in the method of exchange surges.
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So what does this really mean?
In my opinion, this announcement will only help to further cement the validity of bitcoin as a legitimate investment vehicle for the mainstream. What is really interesting about this article is that the company behind this, LedgerX, is part of Alphabet's investment arm. So basically this is one of the biggest companies in the world diving into bitcoin trading and helping to further build out the infrastructure.
This will give hedge funds and other asset managers another vehicle to trade bitcoin. This should help further provide liquidity in the trading market as a whole. Liquidity is very important for the long term success and growth of bitcoin and crypto in general. The more and more liquidity that is introduced to the market, the less volatile the market becomes. This will ultimately lead to more investors getting involved with crypto. Step by step we get closer and closer to the moon.
