trueDigital Holdings to initially facilitate institutional forwards trading
trueEX LLC (“trueEX”), plans to launch a regulated derivatives marketplace for digital assets, to deliver the confidence and transparency that institutional investors have been seeking. The initial contracts will be for bitcoin non-deliverable forwards (NDFs) settled in USD and will be listed under the “trueDigital” brand on the existing trueEX swap execution platform, pending review with the Commodity Futures Trading Commission.
Digital assets, including bitcoin and Ether, now comprise in excess of $430 billion in market capitalization. While attracting greater institutional interest, the marketplace has been lacking the regulatory and technology building blocks needed for institutional involvement and participation.
The trueDigital contracts are subject to a licensing and services agreement with a newly-formed affiliate of trueEX, trueDigital Holdings (“TDH”), that will provide product development, and act as the sales and marketing arm for the new products.
At the same time, TDH will enter into a strategic partnership with the leading blockchain venture studio, ConsenSys, to develop a benchmark rate for Ether and the infrastructure needed for the broad adoption of digital assets by the institutional community. Ether is the second largest digital asset after Bitcoin.
“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, but the marketplace is sorely lacking the necessary foundation, infrastructure and platforms that institutional investors have come to expect in other important markets,” said Sunil Hirani, founder of TDH.
“NDFs on digital assets are the logical next step for institutional investors who are seeking exposure to Bitcoin and other digital currencies. Sunil is a proven innovator in financial products and market infrastructure, and one of the earliest advocates for the use of digital assets in institutional finance. We’re looking forward to working with his team at trueDIGITAL,” said 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.
About trueDigital Holdings LLC
trueDigital Holdings LLC is an affiliate of trueEX LLC, a fast-growing swap execution facility catering to the institutional marketplace for fixed income swaps and derivatives. TDH provides research and product development for derivatives to be listed on trueEX and also serves as its sales and marketing arm for the emerging marketplace for digital assets.
trueEX LLC operates the first exchange approved by the Commodity Futures Trading Commission (CFTC) as a Designated Contract Market (DCM) for swaps. As an exchange and registered swap execution facility (SEF), trueEX has executed over $9.7 trillion in trading volumes and $20.7 trillion in post-trade processing services since its launch.
trueEX LLC operates the first exchange approved by the Commodity Futures Trading Commission (CFTC) as a Designated Contract Market (DCM) for swaps. As an exchange and registered swap execution facility (SEF), trueEX has executed over $9.7 trillion in trading volumes and $20.7 trillion in post-trade processing services since its launch. Its SEF provides request-for-quote (RFQ) trading protocols and a proprietary portfolio terminations and compactions (PTC) system for the efficient trade management of existing positions through direct connectivity to multiple clearing houses. trueEX has been recognized as one of the industry’s leading and most innovative companies, winning OTC Trading Platform of the Year and SEF of the Year at the Risk Awards, as well as SEF of the Year at both the GlobalCapital and GlobalCapital Americas Awards. trueEX has also been featured on the Forbes Fintech 50 and Institutional Investor Tech 50 rankings of the most innovative fintech companies. The Company is based in New York and enables the trading of interest rate swaps by all market participants. It will add other liquid derivatives to its portfolio in the near future.