Tassat Group LLC, a global provider of financial technologies and products for the traditional and digital asset markets announced today that the CFTC has approved its acquisition of a Swap Execution Facility (“SEF”) registration.
With this transfer approval, Tassat will move forward with plans to list its first cryptocurrency derivative product, an institutional-focused, margined, physically-deliverable Bitcoin swap. This derivative contract will be listed on its own SEF registered as Tassat Derivatives LLC, a wholly owned subsidiary of Tassat Group LLC.
Tassat will be providing additional details about its Bitcoin swap contract, the development of its exchange and will be announcing a formal launch date in the near future.
- Tassat has been actively on-boarding institutional participants (eligible contract participants or ECPs) and running User Acceptance Tests
- The Bitcoin swap will be traded view a central limit order book
- Shortly after the initial launch, Tassat plans to introduce additional ECP-focused workflows including Request for Quote (RFQ) and block trading functionality.
The transfer of the SEF registration was made effective on November 6, 2019.
Thomas Kim, Tassat CEO said: “Having a Swap Execution Facility will enable Tassat to bring to market the flexible and innovative derivative products our institutional customers need to efficiently manage digital asset risk. Additionally, our exchange will provide the workflows and infrastructure needed to gain exposure, trade and hedge digital assets in much the same way as in other traditional asset classes. We look forward to working closely with the institutional community and the CFTC to make this a reality”.
Tassat has been working closely with buyside traders and liquidity providers to develop its products.
Philippe Bekhazi, CEO of XBTO said: “We are keen to transact with a new physically deliverable swap product and look forward to participating in Tassat’s exchange. We have been active participants in their UAT and believe they will be introducing a product that will help drive the industry forward.”
John Slazas Managing Partner at DARMA Capital said: “We are thrilled to see an exchange enter the market that is focused on offering innovative and regulated products. This is a positive step in the continued maturation of the digital currency asset class. We’ve watched Tassat grow and are excited to see them achieve this milestone as they move one step closer to offering products which we look forward to trading.”
Upon launch, Tassat will join the CME and Bakkt in being among the first US venues to offer CFTC-regulated cryptocurrency derivatives products. Thereafter Tassat plans to introduce additional derivatives products encompassing a range of underlying assets, durations and contract types to meet the needs of a wider range of institutional participants.
Tassat LLC, a New York-based global financial technology company, provides innovative solutions to financial markets utilizing blockchain-based technologies to enable frictionless asset transfer and settlement. In addition to developing and introducing this leveraged physically-deliverable Bitcoin derivatives for institutional investors, Tassat has developed the first IOSCO compliant OTC reference rates for Bitcoin and Ethereum based on executable bid-offer data from over 10 institutional market makers. Tassat also built the first blockchain-powered 24/7/365 payments platform approved by the NYDFS for a New York based commercial bank.