CFTC Approves Tassat to Issue Bitcoin Derivative

Tassat is now planning to issue Bitcoin derivative after acquiring a swap execution facility (SEF) registration from the CFTC.

November 8, 2019, | AtoZ Markets – New York-based financial technology firm Tassat — formerly known as trueDigital — has succeeded in overcoming the first hurdle in its bid to launch a fully-regulated crypto derivatives exchange.

Tassat Gets Green Light From CTFC To Offer Bitcoin Derivatives

Tassat has gained approval from the US Commodity Futures Trading Commission (CFTC) to offer a SEF. According to an announcement on November 7, the New York-based firm is now planning to launch physically-settled Bitcoin margin swaps.

Furthermore, Tassat had first reached the agreement in principle to acquire —  subject to CFTC approval — trueEx’s SEF registration back in July of this year.

The company is now waiting for news regarding its prospective acquisition of trueEx’s Designated Contract Market (DCM) registration. This would allow it to operate an exchange listing futures or options contracts with oversight from the CFTC.

TrueEX and Tassat met the requirement for transferring a SEF registration

In its press release, the CFTC stated that trueEX and Tassat fulfilled the requirement for transferring a SEF registration. In addition, the agency demonstrated that Tassat would comply with the provisions of the U.S. Commodity Exchange Act and CFTC regulations.

Currently, there are 19 registered SEFs and this includes Tassat, as per CTFC. They also noted that they have registered TrueEX as a SEF on January 22, 2016.

The registration brings Tassat closer to launching a crypto derivatives exchange with full oversight from the CFTC. They hope to list physically-delivered Bitcoin derivatives for institutional investors. Back in July, Tassat CEO Thomas Kim said:

“Adding the exchange to our ecosystem delivers a complete end-to-end offering, currently unavailable today, that encompasses tokenization, payments, market data and settlement for the benefit of our clients and partners.”

About Tassat and TrueDigital

In March, Tassat partnered with crypto data firm Kaiko and digital assets analytics company Inca Digital Securities. The goal was to widen the distribution of its over-the-counter reference rates for Bitcoin and Ethereum.

Initially, TrueDigital was established as a subsidiary of TrueEx.  TrueDigital has long been active in the crypto space. The firm was the first in the industry to secure a DCM registration for Bitcoin swaps from the CFTC back in 2012.

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