LedgerX Launches Bitcoin Savings Platform LedgerSavings

 In Bitcoin, Exchanges

The service promises 16% interest per annum and is for long holders of Bitcoin.

LedgerX, a digital currency clearinghouse and options exchange regulated by the US Commodity Futures Trading Commission (CFTC), announced it has launched LedgerSavings, a Bitcoin interest-bearing savings platform.

According to the official LedgerX announcement, the first transaction with the new service was made in July at a yield of 15% per annum for the next six months, despite the price fluctuations of Bitcoin.

“The key insight and contribution from LedgerSavings is that it could be viewed in a way that was more relevant and intuitive to a broader set of customers,“ said Paul (full name and position not provided) of LedgerX.

According to the LedgerSavings website, the service is a simplified version of LedgerX’s crypto derivatives trading platform. It focuses on providing call overwrites utilizing the products already available for trading on LedgerX. A seller using the LedgerSavings platform receives an upfront call premium for writing insurance to a buyer who wants long exposure with limited risk.

The new product is intended for long holders of bitcoin who are more interested in call overwrites than on options trading.

The LedgerSavings service is available to all LedgerX users through the central limit order book, where they can enter sell limit orders. “As with any limit order on the LedgerX platform, there is no guarantee of execution and the order is executed in price-time priority on the central limit order book,” the website reads.

Related Article:  Stablecoins Gaining Popularity in India to Minimize Central Bank’s Impact

The implied interest rate, at the time of writing, is 16% per annum. For now, LedgerSaving supports only Bitcoin, but, as per the company statement, it will eventually support Ether as well.

LedgerX is registered with the CFTC as a swap execution facility and derivatives clearing organization. The company targets institutional clients and offers a trading platform for crypto derivatives and swaps and LedgerSavings.

The USD funds are held in custody in a US bank.

Source link: Click here. Disclaimer:  This is a third-party article. The information on the Verified topics are provided on a strictly "as is," "where is" and "where available" basis. Verified topics expressly disclaim any implied warranties. Note Verified topics do not give any financial advice, for more information see our Acceptance of terms.


Start typing and press Enter to search