Friday, December 9, 2022

Credit Swap Innovator Bringing Ether Derivatives to Wall Street

Credit Swap Innovator Bringing Ether Derivatives to Wall Street

Sunil Hirani, one of the innovators behind credit-default swaps (CDS), has now turned his attention toward creating an ether derivatives market. As Ethereum matures, so too does the interest of institutional investors.

Also read: Converting ETH Into a Value Store? Buterin Mulls Burn Options

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Ether – which has seen 3000 percent gains in the past 12 months alone – has finally caught Wall Street’s concerted attention.

Specifically, it’s caught the attention of Sunil Hirani, the financial maestro who sold his vanguard CDS firm Creditex Group for approximately USD 500 million nearly a decade ago.

According to two inside sources who’ve requested anonymity, Hirani is facilitating the launch of ether contracts on a currently undisclosed exchange that’s been given the pseudonym “Virtuoso” for now.

The fact that the exchange is being protected by a pseudonym suggests either 1) the project is still early and could potentially fall through, or 2) the exchange in question is not CME or Cboe Global Markets, who would have no reason to hide impending ether contracts after the two companies have already announced BTC futures.

Will institutional interest push ETH even higher?

Could this be Goldman Sachs’ rumored cryptocurrency trading operation, or a new darkhorse contender altogether?

We’ll have to wait and see. The two anonymous sources explained that Hirani plans to have ether contracts live in Q1 or Q2 2018.

Institutional Investors Will Have an Array of Choices When It Comes to Ether

First off, the regulated nature of “Virtuoso” will should allay any institutional concerns. The U.S. Commodity Futures Trading Commission will manage the new ether contracts market, ensuring that everything goes as smoothly as possible.

Once full operations are live, investors will be able to choose between the following ETH-based options:

  • swaps
  • forwards
  • non-deliverable forwards
  • futures

This means that Wall Street is about to have a teeming ether derivatives market that will likely propel ether, and the Ethereum community in extension, to new heights in 2018 and beyond.

Images via Coinbase, USAToday

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