Cryptocurrency asset management platform LedgerX will be upgrading its Bitcoin options trading by introducing a new service, as reported by Coindesk today. Juthica Chou, Chief Operating and Risk Officer and co-founder, said, “We’re seeing more and more demand for people who want to earn some sort of interest off their Bitcoin and lending is not exactly natural to people – especially lending where they earn their interest back in bitcoin. So we’re seeing participants come back to trading.”
Chou worked as an options-market maker before joining Goldman Sachs and learning about algorithmic trading. She explained that Bitcoin options trading is already extremely famous in LedgerX, “The contract that people are entering into here is such that they’re selling an upside call option, so probably call it [two times] where bitcoin is now. If bitcoin tanks, they still collect the exact same premium and if bitcoin goes up then they end up selling bitcoin at about [two times] … overall, I think the volatility is what impacts us … the more [bitcoin’s price] moves, the more fiat [investors] can collect.”
LedgerX is utilizing the Know Your Customer (KYC) policies employed by exchanges that wish to work legally in the US. Chou said that the team is excited for customers to look at the new service “because this is something we’ve seen a lot of on the LedgerX platform.”
Founded in 2013, the platform has received a total of $12.9 million in funding by companies such as Blockchain Capital, Huiyin Blockchain Venture, GV, Lightspeed Venture Partners, SV Angel, Miami International Holdings and TechU Angels. Last month, it was noted that LedgerX was trading $7.5 million per week, seven times its original number. Even after the decrease in cryptocurrency’s price this year, the company didn’t face any challenges. “Our sophisticated participants are not just buy-and-hold people, let me put it that way,” said Chou.