Visit crypto investment products regulated are gaining ground despite or thanks to hardening of the legislation. A boon for French Kaiko which has entered this market segment with Cboe Digital.
In the most mature market for crypto products, the US authorities are now imposing a repressive policy, as evidenced by several proceedings and convictions, including one against Binance and its CEO.
However, the country is not closing the door on all these investment products, and ETFs in particular. According to Kaikothe French data specialist, demand is even growing in the US markets.
First native crypto exchange and clearing house
In response, it has announced a partnership with Cboe Digital, a subsidiary of a TradFi player and regulated operator. The company offers a unified platform for spot trading and crypto derivatives.
Kaiko joins its development through a joint offering announced for launch in January 2024. As part of this, the French company will provide reference rates for the settlement of margined futures contracts on Bitcoin (BTC) and Ethereum (ETH).
For Kaiko, this is a significant partnership. The crypto data and index provider points out that Cboe Digital will be the “first regulated native crypto exchange and clearing house in the U.S. to enable trading of spot and leveraged derivatives on a single platform”.
The promise of the two partners is thus to enable institutional investors to gain exposure to crypto-assets through a “reliable and regulated derivative offering”, and one that they can trust.
The contracts concerned are therefore for BTC and ETH, and are settled in US dollars on the basis of dedicated Cboe Kaiko rates. More specifically, these are the Cboe Kaiko Bitcoin (CKBR) and Cboe Kaiko Ether (CKER) rates.
Kaiko flexes its institutional muscle
These joint rates are directly developed and administered by Kaiko Indices, which constitutes Kaiko’s regulated indices and benchmarks division. The company claims rates “designed to provide a broad, representative reflection of the crypto markets”.
For Cboe, this contract with a crypto specialist further underlines the financial group’s ambition to expand its position in the sector. A year earlier, Cboe Global Markets signed a data-sharing agreement with oracle Pyth Network, opening the doors to DeFi.
In the institutional segment, Kaiko is also pursuing its own developments. In June, it joined forces with Nansen to develop an analysis platform. The ambition: to offer an overview of centralized and decentralized crypto exchanges.
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