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Bitcoin Derivative in Development by Wall Street Engineers -Breaking

by Mike Robinson

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Wall Street Engineers Develop Bitcoin Derivative

Wall Street engineers are currently developing a Bitcoin derivative. SFOX specifically views NDFs to be a means of expanding cryptocurrency-related trading. According to SFOX, daily trading volume could possibly reach $100 million per day.

Development Process

SFOX is a group of traders and engineers at crypto prime brokerage. They are developing a means to increase access for large investors and banks by creating a customized derivative.

SFOX’s co-founder, George Melika, mentioned that his firm is in talks with large banks as well as market makers, such as Jane Street, towards opening a market that facilitates the trading of Bitcoin derivatives.

NDFs (non-deliverable forward contract used for currency market) are the main objective. They allow banks to provide greater exposure to Bitcoin to clients through an agreed-upon price.

The Flipside

  • Because of concerns around compliance, Know Your Customer rules (KYC), market liquidity and market liquidity banks are reluctant to buy or trade Bitcoin.

Why you should care

SFOX is able to access a wider market of NDFs through its 120-plus institutional clients. This could contribute to more interest in Bitcoin investments and bring the token’s value forward after its recent bearish turn.

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