The Tassat cryptocurrency derivatives exchange, formerly known as trueDigital, has received the approval of the United States Commodity Futures Trading Commission (CFTC) to launch physically sound bitcoin margin swaps.
According to an ad published by the CFTC, it approved the transfer of the swap execution mechanism (SEF) registration from trueEX LLC to Tassat this month, about four months after the companies reached a “principle agreement” on the matter. TrueEX was registered with SEF back in 2016.
The CFTC announcement reads:
TrueEX and Tassat have complied with the SEF registration transfer requirement, demonstrating that Tassat will comply with the provisions of the Commodity Exchange Act and CFTC applicable to SEF upon transfer of registration. There are currently 19 SEFs registered, including Tassat.
Tassat is not the only crypto derivatives exchange that can offer these products to customers. Earlier this year, LedgerX received CFTC approval to launch physically settled bitcoin futures contracts after registering with the CFTC as a swap execution and derivatives clearing house (DCO) facility since July 2017.
Tassat has yet to disclose a launch date for its physically based bitcoin margin swaps, but said it is "actively engaging institutional members" while testing the proposal. The release of the Bitcoin swap product will allow it to compete with SeedCX, which has been testing a similar offering since August and plans to launch it later this year.
The firm, founded in 2018, has been particularly active in the cryptocurrency space. This helped Signature Bank launch its Signet blockchain payment system, and in partnership with Inca Digital Securities and Kaiko, it saw its over-the-counter (OTC) bitcoin and ether reference rates reaching a wider audience.