Cryptocurrency holders even when they manage to secure their assets on cold storage or harware wallets, have a significant disadvantage compared to people with fiat accounts in large banks – they don't get revenue from their holdings. LedgerX aims at providing something along these lines with their new savings product.
One of the most popular investing techniques for clients of LedgerX proved to be where person deposits Bitcoin to the company and then sells call option at a slightly longer date, with a higher strike call option. Essentially, the new product mirrors this proceedings but with one-click approach to all the operations. Potentially it allows for the customers to receive a revenue in US dollars for selling the option without all the operations of setting up and selling the option by themselves, reducing the user input to the same of opening the bank account in regular financial institution.
All that the client has to do is to chose how much Bitcoin they want to put into the account and the implied rate they look to earn from the operation. The contracts initially will be available for three and six month duration with LedgerX charging the transaction fee for their services.
The notable thing about the New York company is CFTC approval for operations with cryptocurrency with licenses both for derivatives clearing organization (DCO) and swap execution facility (SEF). It shows that the LedgerX takes clients' security seriously and is operating totally above the law, which is quite important in light of recent CFTC crackdown on unlicensed cryptocurrency companies.