The United States Commodity Futures Trading Commission (CFTC) has approved the application of LedgerX LLC for designation as a contract market, according to an announcement published on June 25.

LedgerX — a U.S.-based regulated crypto derivatives and clearing platform — can operate as a designated contract market (DCM) as of June 24, 2019. The company’s activities will be registered under Section 5 of the Commodity Exchange Act (CEA) and Part 38 of the CFTC’s regulations.

Registration as a DCM will require that LedgerX maintain compliance with all applicable provisions of the CEA and CFTC regulations. “LedgerX has requested that the CFTC amend its order of registration as a DCO, which limits LedgerX to clearing swaps, to allow it to clear futures listed on its DCM,” the announcement further reads.

LedgerX initially applied for a designated contract market license that would allow it to launch the new futures product in April. LedgerX’s co-founder Juthica Chou said at the time:

"We've long had the goal to expand the range of customers we can serve beyond our institutional base — it's the natural next step for us. Omni, by interfacing with our existing institutional liquidity pool, will offer retail customers a top tier experience from day one."

Earlier in June, institutional cryptocurrency platform Bakkt announced that it will begin testing its first product, physically-delivered bitcoin (BTC) futures on July 22. “This launch will usher in a new standard for accessing crypto markets. Compared to other markets, institutional participation in crypto remains constrained due to limitations like market infrastructure and regulatory certainty,” the company’s chief operating officer Adam White said.