Bitcoin-Based Swap Launches, First Cryptocurrency Product To Get Approval
Good news for Bitcoin enthusiasts: TeraExchange today launched a swap based on the cryptocurrency.
It is the first financial product based on Bitcoin to receive approval from the Commodity Futures Trading Commision, as Reuters’ Douwe Miedema reports:
The derivative allows clients to protect the value of their bitcoin holdings by locking in a dollar value, offering an insurance against the astronomical price swings that have plagued the computer-generated currency.The launch comes nearly six months after TeraExchange announced plans for the swap this spring.
“For a merchant to take bitcoin, there wasn’t until this product a regulated way for them to put on a hedge to manage the risk … and now with this product they can,” Christian Martin, who heads TeraExchange, told Reuters.
