Key Takeaways
Bitnomial has launched the first-ever CFTC-regulated XRP futures in the US.
The XRP futures are physically settled, backed by actual XRP, reinforcing market integrity.
Bitnomial, a digital asset derivatives exchange, officially launched the first-ever CFTC-regulated XRP futures in the US today, following the company’s voluntary dismissal of its lawsuit against the SEC.
The lawsuit withdrawal came shortly after Ripple CEO Brad Garlinghouse announced that the SEC would drop its appeal against Ripple, a move that confirms XRP is no longer considered a security under current law.
Last October, Bitnomial brought a lawsuit against the securities regulator. The legal challenge arose from the SEC’s claim that XRP futures are ‘security futures’ under its jurisdiction, which Bitnomial disputed.
The firm argued that XRP futures do not meet the definition of security futures, opposing the need for additional regulatory requirements stipulated by the SEC.
Now with “the SEC’s evolving policies on crypto,” Bitnomial believes there is no longer a need for litigation. “We believe regulatory certainty is essential for fostering innovation and growth in the digital asset space,” the company stated.
The newly launched investment product aims to provide traders with a regulated way to gain exposure to XRP, with contracts delivered in actual XRP upon settlement.
“Bitnomial is committed to building a regulated market infrastructure that supports real asset ownership in digital asset markets,” said Luke Hoersten, CEO of Bitnomial. “Physically settled futures ensure that every contract is backed by actual XRP, reinforcing true price discovery and market integrity.”
The Chicago-based exchange also offers offerings tied to other digital assets like Solana, Avalanche, Chainlink, Bitcoin Cash, Litecoin, Ethereum, Polkadot, and Hedera.
Ripple previously backed a $25 million funding round for Bitnomial. The capital was used for the development of Botanical, a crypto derivatives platform designed to offer perpetual futures, traditional futures, and options.
Bitnomial also revealed plans to leverage Ripple’s RLUSD stablecoin for perpetual futures settlements.
