As an analyst with over a decade of experience in the cryptocurrency and blockchain industry, I find this strategic move by Ripple to be both intriguing and strategically sound. Ripple’s investment in Bitnomial, a CFTC-registered digital assets derivatives platform, underscores its commitment to compliance while also expanding its reach within the regulated derivatives market.
In a significant investment move, Ripple spearheaded a 25-million-dollar financing round for Bitnomial, a U.S.-based and regulated digital asset derivative trading platform and brokerage service.
On October 15th, it was announced that Ripple, the organization behind the digital asset XRP (XRP), spearheaded a funding round, as they gear up for the public unveiling of their perpetual futures trading platform, Botanical.
As per the information provided in a press announcement, Botanical is set up to grant users the ability to trade perpetual futures, traditional futures, and options. Currently, it’s still in a closed beta phase, but its official launch will make available products that align with the regulations of the U.S. Commodity Futures Trading Commission.
Bitnomial functions as a Futures Commission Merchant (FCM), which is registered with the Commodity Futures Trading Commission (CFTC). This operation is carried out through Bitnomial Clearing, LLC.
As an analyst, I’d rephrase that statement like this: In my view, the CEO of Ripple, Brad Garlinghouse, believes that Bitnomial is pioneering a fresh chapter in the regulated derivatives market.
By introducing offshore trading models into the American derivatives market, Bitnomial opens up a substantial business prospect. As they create a regulatory-compliant derivatives market for digital assets like XRP, this move could reshape and expand the industry landscape.
Brad Garlinghouse.
In simple terms, Bitnomial intends to utilize Ripple’s upcoming stablecoin, RLUSD, for transaction settlements. It’s worth mentioning that Ripple has previously announced several exchange and platform partners who will be involved in the launch of RLUSD.
Regarding regulatory matters, Bitnomial has taken legal action against the U.S. Securities and Exchange Commission (SEC), challenging the agency’s persistent classification of XRP as a security. In response, Ripple has submitted a counter-appeal after the SEC filed their own appeal in the Ripple vs. SEC lawsuit.
In the summer of 2023, a United States judge made a decision classifying XRP as something other than a security. This determination means that individual transactions involving XRP on trading platforms do not automatically equate to investments in securities.
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2024-10-15 23:04