StoneX executes first Bitcoin cash-settled swap
18 May 2022 US
Image: Jiw_Ingka/stock.adobe.com
StoneX Markets, a subsidiary of StoneX Group — a provider of execution, post-trade settlement, clearing and custody services across asset classes globally — has announced it has executed and settled its first cash-settled Bitcoin USD swap.
The counterparty to the trade was one of StoneX’s institutional foreign-exchange (FX) clients, Liquidity Solutions Global, the London-based subsidiary of DriveWealth Holdings and a liquidity provider to multiple cryptocurrency venues.
StoneX Markets' institutional FX division made USD cash-settled crypto swaps available for trading to institutional FX clients earlier in May.
This new offering compliments the firm’s traditional institutional FX products, including more than 40 currency trading pairs across major and emerging market currencies, forwards, non-deliverable forwards, and options.
Eric Donovan, global head of institutional FX at StoneX Group, says: “As with any other asset class, investors need to connect to digital assets markets through a trusted partner who can secure best execution and meet their compliance and custody needs. Cash-settled swaps allow our clients to access the market movement of underlying digital assets without taking physical custody.
“As a result, many regulated institutions are looking to the swaps market as a cost-effective way to gain access to crypto price exposure without the regulatory burden, cost, and additional risks traditionally associated with spot crypto ownership.”
The counterparty to the trade was one of StoneX’s institutional foreign-exchange (FX) clients, Liquidity Solutions Global, the London-based subsidiary of DriveWealth Holdings and a liquidity provider to multiple cryptocurrency venues.
StoneX Markets' institutional FX division made USD cash-settled crypto swaps available for trading to institutional FX clients earlier in May.
This new offering compliments the firm’s traditional institutional FX products, including more than 40 currency trading pairs across major and emerging market currencies, forwards, non-deliverable forwards, and options.
Eric Donovan, global head of institutional FX at StoneX Group, says: “As with any other asset class, investors need to connect to digital assets markets through a trusted partner who can secure best execution and meet their compliance and custody needs. Cash-settled swaps allow our clients to access the market movement of underlying digital assets without taking physical custody.
“As a result, many regulated institutions are looking to the swaps market as a cost-effective way to gain access to crypto price exposure without the regulatory burden, cost, and additional risks traditionally associated with spot crypto ownership.”
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