-Bitcoin news, price, information & analysis LedgerX has announced today that it has launched a bitcoin savings account, perfect for those who want to buy and hodl their assets. The launch of the savings account by the cryptocurrency asset management platform is the first to be regulated by the U.S. Commodities Future Trading Commission (CFTC).
According to a report from Forbes, the aim of the bitcoin savings account is to give investors a fiat-based yield on the bitcoin they’re holding. Through the LedgerX Savings product investors use a technique known as a call overwrite.
Through a simplified version, a user chooses the implied rate they want to earn with the new savings account and the number of bitcoins they are hoping to earn the yield on. They then submit this to the LedgerX matching engine that is powering their existing bitcoin options product.
At its most basic, the idea is to make it easier for investors to know when they can potentially make a premium on the sale of their asset. The LedgerX Savings account also comes with two CFTC licenses: a derivatives clearing organisation (DCO) license and a swap execution facility (SEF) license.
According to Forbes, this ‘signals an increasing level of sophistication being offered to bitcoin users.’ Designed based on the use patterns of LedgerX’s existing customers the platform expects to see high volumes on the product. Similar to the way a normal savings account works, though, it may have more appeal to those who prefer to hodl their bitcoin rather than sell. Read more from newsbtc.com…
thumbnail courtesy of newsbtc.com