Tera Group Launches Bitcoin Swap

christian-martin-teraexchange
Christian Martin, Tera

The non-deliverable forward (NDF) swap will allow institutions to transact a specific Bitcoin exchange rate against another currency of choice over a set period of time, which is initially planned to be 25 days.

The move comes as Tera and other market participants expect greater regulation of Bitcoin-based derivatives by the Commodity Futures Trading Commission (CFTC), as it becomes more commonly traded and hedged by proprietary trading shops and funds like Fort Hill Capital, Sun Trading, and Fortress.

"The use of a Bitcoin swap is an inflection point in the evolution of crypto-currency. There is incredible momentum and support behind this alternative global currency, but even with this excitement it is critical that market participants have tools at this disposal to hedge price risk. In a typical example, the swap will be used by a seller to protect itself from the price risk of BTC accepted in a commercial transaction," says Christian Martin, Tera CEO.

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