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- Bitnomial launched its Botanical platform, offering regulated crypto futures trading with support from a $25 million funding round led by Ripple.
- Ripple’s RLUSD stablecoin will be used for settling perpetual futures on Botanical, enhancing trading stability within a compliant U.S. market.
Bitnomial, a US-regulated crypto derivatives exchange, has lately made great progress in expanding its capabilities with the debut of Botanical, a new trading platform.
Supported by a $25 million investment round run by Ripple Labs, Bitnomial seeks to offer a compliant and safe space for trading regular futures, options, and perpetual futures.
Botanical provides a controlled alternative that conforms with the Commodity Futures Trading Commission (CFTC) criteria, unlike decentralized exchanges (DEXs) that may demand customers to rely on VPNs for trading from the United States.
🚨 BREAKING:
Bitnomial Announces the Launch of CFTC Regulated Bitnomial Exchange with $25 Million funded from Ripple! #XRP
Brad Garlinghouse will join their board as they bring perps & crypto derivatives to US markets for the first time ever! 🇺🇸 pic.twitter.com/dI1lyudyVy
— 𝓐𝓶𝓮𝓵𝓲𝓮 (@_Crypto_Barbie) October 15, 2024
Ripple’s RLUSD Powers Botanical’s Innovative Approach to Regulated Crypto Futures
This platform is unique for including a settlement choice for perpetual futures—Ripple’s RLUSD stablecoin. Bitnomial aims to provide a stable and effective trading mechanism for its customers by employing RLUSD, therefore providing an inventive solution in a market where stability is sometimes a problem.
Beyond only financial support, Ripple’s engagement supports Bitnomial’s strategic alignment by having Brad Garlinghouse, its CEO, join Bitnomial’s board of directors.
Garlinghouse underlined that this cooperation is a vital first step in introducing the best practices of offshore trading into the controlled U.S. derivatives market, therefore giving a route for U.S. traders to access digital asset futures in a more open fashion.
Botanical, currently in beta phase, provides early access to a small number of chosen users. It is set to make use of Bitnomial’s current infrastructure, approved by CFTC and comprising both exchange and clearinghouse capabilities.
This platform’s introduction fits Bitnomial’s goal of creating a regulated market, so it is among the few American businesses authorised to run specified contract markets. With intentions to increase its products as the company grows, this new platform will enable a range of futures contracts.
Navigating Regulatory Challenges Amid U.S. Scrutiny of XRP Futures
The date of this release falls under growing U.S. crypto market regulatory scrutiny. Bitnomial’s attempts to create a compliant trading environment run into difficulties from authorities, especially with relation to their XRP US Dollar Futures contracts.
As we previously reported, Bitnomial had developed physically settled contracts for XRP US Dollar Futures (XUS), restricted to 100,000 XRP apiece. An integral part of Bitnomial’s larger approach to diversify its products and comply with legal criteria are these contracts.
Arguing that these agreements should only be under the authority of the CFTC, the exchange has even registered a court lawsuit to clear its regulatory posture. The argument exposes continuous conflicts in the American regulatory scene, especially with relation to the classification of digital assets like XRP.
Meanwhile, with a daily trading volume of around $1.15 billion, XRP is trading about $0.5448 as per the most recent reports, suggesting a 1.07% rise over the last 24 hours.
