TheBlock
Anchorage Digital has applied for CFTC swap dealer registration as it expands its institutional crypto options business. If approved, Anchorage Digital Swap Dealer expects to offer European-style Bitcoin and Ether options with maturities of up to one year. The National Futures Association is reviewing the application, and CEO Nathan McCauley gave no estimate for a decision.
Why it matters
Registration would bring the dedicated entity under CFTC requirements for capital, risk management and margin. Anchorage said institutional clients would be able to trade digital asset derivatives with a CFTC-registered counterparty alongside its existing custody and other services.
Anchorage Digital Bank became the first federally chartered digital asset bank in 2021 and is regulated by the Office of the Comptroller of the Currency. The swap dealer application is a separate step toward expanding the firm's regulated services.
Market impact
Anchorage said much of its existing options business growth has come from public companies holding Bitcoin and Ether on their balance sheets. Asset managers and funds using options to manage exposure have also contributed, though McCauley did not disclose trading volumes or growth figures.
The firm intends to add more products later, subject to its approval process and regulatory requirements. Registration remains pending, and McCauley said Anchorage would share updates as appropriate.
Frequently asked questions
-
What options does Anchorage plan to offer if approved?
Anchorage Digital Swap Dealer expects to offer European-style Bitcoin and Ether options with maturities of up to one year.
-
Who is reviewing Anchorage's application?
The National Futures Association is reviewing the application. CEO Nathan McCauley gave no estimate for when the process might finish.
-
What requirements would the swap dealer entity face?
Registration would bring the entity under CFTC requirements for capital, risk management and margin.
-
Where has Anchorage's existing options business growth come from?
Anchorage said much of the growth came from public companies holding Bitcoin and Ether on their balance sheets. Asset managers and funds using options to manage exposure also contributed.
-
How does the application relate to Anchorage's bank?
Anchorage Digital Bank became a federally chartered digital asset bank in 2021 and is regulated by the Office of the Comptroller of the Currency. The swap dealer application is a separate step.
CoinDesk
WatcherGuru
WuBlockchain
Crypto Capital Venture
CryptoSlate
CoinTelegraph