Zero Hash, the crypto-focused affiliate of Seed CX, has launched support for derivatives, allowing participants to settle bilateral derivative transactions, the company announced on Wednesday.
With this, the platform now supports all back-office settlement functions for forwards. The company also has plans to expand the functionality for options as well, the announcement detailed.
Commenting on the development, Brian Liston, co-founder of Seed CX and president at Zero Hash, said: “Derivatives are a rapidly evolving area within the digital asset industry, yet there is a critical demand in the market for a regulated post-trade settlement utility, like Zero Hash.”
The company also added flexibility to the new offering as institutional traders will be able to customize the frequency of their forward contracts.
“We’re excited to service that demand with the launch of this new functionality. Zero Hash can now enable any trading platform or set of participants to trade and settle forwards in an efficient and secure manner,” Liston added.
Coping up with the increasing demand for crypto derivatives
The firm elaborated that it performs collateral management for derivatives throughout their lifecycle including the calculation of variation margin, initial margin and final settlement values, the sending of margin-call notifications, and the movement of funds to reduce operational and counterparty risk.
Zero Hash offers crypto and fiat custody services, along with on-chain settlement services. In July, the company gained a BitLicense from the New York Department of Financial Services (NYDFS), with which it can legally operate a virtual currency exchange in the state of New York.
Meanwhile, in August, another subsidiary of Seed CX, Seed SEF, started user acceptance testing of its physically-settled bitcoin derivatives. The company is planning to list the bitcoin swap on Seed SEF with both margined and physically-settled offerings.