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Eris Exchange: New Cryptocurrency Market to Launch

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Eris Exchange

Derivatives market, Eris Exchange is opening a new cryptocurrency market.

In fact, it’ll be backed by DRW Holdings, Virtu Financial, and TD Ameritrade Holding.

The ErisX Platform

The new platform from Eris Exchange will allow investors to trade Bitcoin, Ether, Bitcoin Cash and Litecoin.

In addition, they can trade futures contracts on cryptocurrencies.  Reportedly, these will be physically delivered, meaning that when they expired, owners will be given the underlying cryptocurrency.  They will not receive cash.

“Our retail clients are seeking to access and trade digital currency products in the same way they do with traditional capital markets – through a legitimate, regulated and transparent exchange,” Steve Quirk, executive vice president of trading and education at TD Ameritrade, said, as quoted by Bloomberg.

ErisX is also seeking to self-certify the new contracts with the U.S. Commodity Futures Trading Commission.

“It could open up additional cryptocurrency products on the future and spot side that our clients could potentially trade,” says J.B. Mackenzie, TD Ameritrade’s managing director of futures and foreign exchange, as quoted by Reuters.

Eris Exchange Platform could Lead to Quicker Cryptocurrency Adoption

To date, cryptocurrencies have had a tough time attracting mainstream investors.

For example, they’re volatile.  Many don’t trust them.  The US SEC is dragging their feet with them.  However, this new venture hopes to change that, and make them more appealing to brokers.

The market is still unregulated. This is both the great appeal and the ultimate Achilles’ Heel to cryptocurrencies. Individual sophisticated investors and institutional investors alike are gun shy with risks.  In a regulated environment depositors feel safe from theft or loss of their money.  That’s because to some extent, it’s insured and protected.

The cryptocurrency environment, on the other hand, is based on a trustless system.

And volatility has made many uneasy

For Bitcoin to function as a means of payment, it needs stability.  At the moment, that doesn’t exist.  It can price at $6,00o one day, and $6,500 the next.  Such volatility outstrips all other currencies.  We also have to consider that Bitcoin is a form of money with fixed supply on its own blockchain, with no central bank to cut off supply if needed. That makes bitcoin inherently prone to volatile price swings.

“We wanted to find something that brings cryptocurrency to customers where they can see it on an actual exchange, something they feel comfortable with in regulated space,” says MacKenzie, as quoted by The Wall Street Journal.

 

 

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