US CFTC has given ErisX the DCO license, which allows for the US crypto exchange's upcoming clearinghouse to clear crypto futures contracts.
US Commodity Futures Trading Commission (CFTC) awarded a new license approval Monday to ErisX, enabling the US cryptocurrency exchange to offer future contracts.
Backed by US brokerage TD Ameritrade, ErisX now holds a derivatives clearing organization (DCO) license. The DCO license officially gives ErisX the green light to launch cryptocurrency future accounts. It also supplements the exchange’s existing designated contract market (DCM) license acquired in 2011.
Thomas Chippas, Chief Executive Officer of ErisX, said in the official post:
“ErisX is unique in that for our digital asset market, we have divided the trading and settlement functions using traditional DCM (exchange) and DCO (clearing) models. This reflects the structure that institutional investors expect from other asset classes and will help drive these markets toward greater relevance and accessibility.”
According to the same post, ErisX will make the digital future contracts available later this year. ErisX currently offers USD trading pairs with Bitcoin (BTC), Bitcoin Cash (BCH), Ether (ETH), and Litecoin (LTC).
Laurian Cristea, General Counsel at ErisX, said:
“Obtaining the DCO license is the second key enterprise goal we achieved this year, after launching our spot market. When futures on digital assets launch later this year we will offer the market a single unified platform for both spot and futures.”
Meanwhile, ErisX’s competitor LedgerX received its own DCM license one week earlier. This makes these competing cryptocurrency exchanges have both the DCO and DCM license under the CFTC.