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New York Stock Exchange to Offer Bitcoin “Swap” Contracts

  • Urvashi Verma
    📰 News

    New York Stock Exchange is developing online Bitcoin trading platform compliant with CFTC


New York Stock Exchange to Offer Bitcoin  “Swap” Contracts

New York Stock Exchange (NYSE) may be developing an online Bitcoin trading platform based on emails and documents uncovered by the New York Times.

In contrast to existing services offered by the  Chicago Mercantile Exchange (CME) and Chicago Board Options Exchange (CBOE) which have integrated cryptocurrencies providing futures trading contracts; NYSE’s parent company Intercontinental Exchange (ICE) is planning to develop a Bitcoin exchange where investors can buy, sell and hold the Bitcoin directly.

Paul Chou CEO and founder of LedgerX told the NY Times:

“The industry is seeing unprecedented institutional interest for the first time in Bitcoin’s history. I’ve been amazed that the strongest believers in cryptocurrency often start out the most skeptical. It’s a healthy skepticism. But at some point the perception shifts, and for many institutions — I think we’re finally there.”

ICE plans to set-up a “swap” contract which enables banks to buy a settlement that will end with the customer owning Bitcoin the next day with the backing and security of the exchange, the NY Times said.

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Although the swap contract is more complicated than the immediate trade of dollars for Bitcoin offered on existing exchanges like Coinbase; it allows the trading to come under the regulation of the Commodity Futures Trading Commission (CFTC) and to operate clearly under existing laws.

The news comes less that one week after Goldman Sachs declared plans to add a Bitcoin trading desk to offerings.

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Cover image via u.today
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About the author

Urvashi Verma is a Chicago-based reporter who writes about the convergence of technology and business. She is interested in fintech, digital currencies, blockchain and currency markets. Urvashi formerly worked with the Times of Israel covering Israel's booming tech industry including Start-Up Nation, venture capital investment, and crowd-funding platforms.

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