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TeraExchange Makes First Bitcoin Derivatives Trade on CFTC

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October 13, 2014

TeraExchange Makes First Bitcoin Derivatives Trade on CFTC

By Oliver VanDervoort
Contributing Writer

While there are certainly some people who are not convinced that bitcoin has a future, TeraExchange thinks there is at least a present value for the digital currency.  The company announced late last week that it had its first bitcoin derivative transaction to be executed on a regulated exchange.  This very first trade was the completed between digitalBTC and a hedging counterparty.

This particular trade is more than  a landmark for TeraExchange. The trade means that market participants have now seen the first risk transfer mechanism. By doing this trade, all trades of bitcoin are now eligible to be regulated by TeraExchange and the CFTC. This is a big step for people who do not quite trust the crypto currency.

"There is significant, growing demand for a hedging instrument like this," said Christian Martin, CEO and co-founder of TeraExchange. "Not only does the swap provide a much-needed risk management tool but it instills confidence and credibility to the entire Bitcoin community at a vital time in the market's development."

TeraExchange worked closely with the CFTC over the last six months in order to certify the trade using bitcoin. The work was thorough and complete in order to make sure rules were followed and are followed in the future. When it comes to bitcoin, Mark Cuban is far from the only person who doesn’t trust the digital currency. Despite some people not trusting the currency, bitcoin is getting more popular all the time. The latest step in making this currency an everyday kind of coin is that there are now ATMs popping up all over North America.

It’s possible the ATM in Canada was a good sign for bitcoin fans, and the ATM that recently popped up in Las Vegas was the best sign yet of a big time trust between bitcoin vendors and bitcoin users. With steps like this kind of trading on the open market and ATMs being erected and apps being allowed back on the iTunes it seems as if bitcoin is making a push towards the mainstream.

Edited by Stefania Viscusi

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