According to the latest press release, Tassat received the CFTC approval for a transfer of the trueEX LLC swap execution facility (SEF) registration. In other words, the company got the basic approval to launch the US regulated cryptocurrency derivatives trading service.
What is Tassat?
Tassat is a Delaware Limited Liability Company from New York City. Tassat’s plan in motion is to offer physically-settled Bitcoin contracts for institutional investors. Therefore, as the rebranded TrueDigital, Tassat successfully overcame the first obstacle on the way to becoming a US regulated crypto derivatives trading platform.
As a subsidiary of trueEX, TrueDigital (Tassat) was already in partnership with Kaiko and Inca Digital Securities for their OTC Bitcoin and Ethereum reference rates. Moreover, TrueDigital was the first to secure CFTC’s DCM registration for Bitcoin swaps in 2012.
Tassat and trueEX
It seems that Tassat’s collaboration with trueEX is fruitful as it draws nearer to the ultimate goal. Regarding the SEF transfer approval between companies, CFTC stated:
TrueEX and Tassat met the requirement for transferring a SEF registration by demonstrating that Tassat will be in compliance with provisions of the Commodity Exchange Act and CFTC regulations applicable to SEFs after the registration is transferred. There are currently 19 registered SEFs, including Tassat.
The two companies proclaimed their plans back in July 2019. Therefore, upon the announcement, Tassat’s CEO, Thomas Kim explained:
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.
CFTC approval for Tassat’s competition?
Lately, many companies compete for the US derivatives trading cake. One of the most notable is Bakkt. Nevertheless, Bakkt failed to produce the results everyone expected. In other words, the daily trading volume on Bakkt isn’t to brag about, barely reaching $11 million on October 25th.
Lastly, Van Eck and SolidX is another partnership aiming to launch the BTC derivatives trading platform in the US. However, their proposal suffered more than a few postponements. Currently, bureaucracy is preventing their business plan fulfillment.