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Bitnomial Gains CFTC Approval for Fully Collateralized Crypto Swaps

According to the company’s official announcement, CFTC approval allows Bitnomial to expand into crypto and economic event prediction markets while enhancing USD and digital asset collateral clearing.

Summary

Bitnomial announced it has received official approval from the Commodity Futures Trading Commission (CFTC) to clear fully collateralized swap contracts. The company stated that this regulatory milestone enables it to launch prediction market services targeting cryptocurrency and economic events. Additionally, Bitnomial’s Clearinghouse will provide broader clearing to partners, enhancing liquidity between U.S. dollars and cryptocurrencies.

Terms & Concepts
  • CFTC: The Commodity Futures Trading Commission, the U.S. derivatives regulator overseeing futures, swaps, and certain cryptocurrency markets.
  • Fully Collateralized Swaps: Swap contracts in which both parties post collateral equal to the full value of the trade, reducing counterparty risk.
  • Prediction Markets: Platforms allowing participants to trade contracts whose payouts depend on the outcomes of future events.