TeraExchange has announced that it has launched a swap based on Bitcoin. Thus, launching the swap offer, the company has become the first to receive approval from a US federal regulator for a financial product based on the budding technology. This is one of the extraordinary decisions by the company for Bitcoin users.
Christian Martin, the head of TeraExchange says that for a merchant to take Bitcoin there was not until this product a regulated way for them to put on a hedge to manage the risk and now with this product they can. According to the announcement, it took TeraExchange, which was launched in 2010, almost half a year to get the product past the regulator.
According to the announcement the derivative allows clients to protect the value of their Bitcoin holdings by locking in a dollar value. Also, offering an insurance against the astronomical price swings that have plagued the computer-generated currency, the company is trying to provide a competitive solution.
A representative for the firm admitted that unlike conventional money, Bitcoin is independent of control or backing by any government; however, as there are various advantages associated with it, the company thought for swap based on it. The company is one of a handful of platforms to facilitate regulated swaps trading that sprung up after the crisis.
TeraExchange signed up some 50 clients
Also, it has constructed an index to gauge the value of Bitcoin that the CFTC was satisfied could not easily be manipulated – this can be the best feature for traders. Also, as the Tera Bitcoin Price Index was based on information from six different exchanges, the company said, a number it expected to grow.
The announcement says that TeraExchange signed up some 50 clients that were interested in the products. A lot of interest has been shown by merchants, hardware suppliers and the so-called miners who retrieve the Bitcoins from the computer programs that generate the virtual currency.
Thus, according to the company the swap which is available to trade from Friday morning is going to help the clients to great extent as they are going to get competitive services. Also, the company would now start marketing it to the new clients who wish to explore it. The company has received commitments from market makers, companies that offer prices for buyers and sellers to facilitate Bitcoin trading.
To contact the reporter of this story: Deepak Tiwari at email@example.com