Seed CX Subsidiary Adds Crypto Derivatives Settlement for Institutions

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Crypto derivatives platform Seed CX is launching support settlement services for bilateral crypto derivative transactions.Specifically, Seed CX subsidiary Zero Hash – the company’s custodian and settlement service provider – will now support derivatives transactions, the firm announced Wednesday, opening the door for institutions to settle derivatives on its platform.According to a press release, Zero Hash will support back-office settlement functions for bitcoin forwards contracts initially, but will add support for options at a future date.This support for forwards will include “the calculation of variation margin, initial margin and final settlement values, the sending of margin-call notifications and the movement of funds, significantly reducing operational and counterparty risk,” according to Zero Hash.Additionally, the service will allow institutions to customize the settlement of forwards contracts – for example, deciding the frequency of calculations – to provide “greater flexibility” for investors.Zero Hash president Brian Liston noted that derivatives are increasingly in demand in…

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