The Brazilian Stock Exchange will announce the future of Bitcoin and Ethereum

The Brazilian Stock Exchange will announce the future of Bitcoin and Ethereum – Mail Bonus

B3, the Brazilian stock exchange, confirmed that within six months it intends to launch its first official product aimed at the cryptocurrency market – Bitcoin (BTC) futures trading. The group’s CFO, André Milanez, announced this at a conference call on Monday.

Milanez did not provide much information on how the product will work. It is not yet known whether B3 will form a partnership or whether it will offer Bitcoin futures trading directly, but the timeline for bringing this product to market was relatively short. “We are going to launch a bitcoin future in the next three to six months,” he said.

Currently, in Brazil, institutional investors and retail investors can trade 11 ETFs through B3 with cryptocurrency exposure, including CRPT11 from Empiricus with Vitreo; NFTS11 from Investo; QBTC11, QETH11 and QDFI11 from QR Assets and META11, HASH11, BITH11, ETHE11, DEFI11, WEB311 from Hashdex. In addition, in Brazil, more than 25 mutual funds are approved by the Securities and Exchange Commission (CVM) that offer different types of risk to the cryptocurrency market.

In January, Jochen Mielke de Lima, B3’s chief technology officer, had already announced that the Brazilian stock exchange would launch several cryptocurrencies in 2022, including Bitcoin futures and Ethereum (ETH) futures.

At the time, the CEO pointed out that the Brazilian stock exchange had been looking closely at the cryptocurrency market from a technical point of view since 2016.

According to the statement, B3 only had to settle the question of whether the negotiations would be conducted against the US dollar or against the Brazilian real. Future contracts require a benchmark index, so if the team chooses Brazil’s national currency, it will be necessary to compile a cryptocurrency asset index in reais – something that does not exist.

The B3 representative also said that it was exploring ways to provide data input for the country’s digital currency, or CBDC.

B3 and cryptocurrencies

In addition to the BTC and ETH of the future, B3 also intends to offer services for domestic cryptocurrency exchanges and to be a kind of “centralized” deposit and settlement facility, according to Jochen Mielke de Lima:

“We have about 30 domestic cryptocurrencies, in addition to the international ones that operate here. We could offer services to facilitate and standardize their operation. I believe that it has something to do with the provision of custody services and in the settlement process. “

Mielke also said that the cryptocurrency market is very similar to a regulated stock market in that it involves issuance, trading, settlement and custody. He said that B3 could help solve common problems between shifts.

“We are identifying friction points that we can help solve to face, such as helping our customers give their end customers the best access,” he said.

In addition, B3 is planning other products based on cryptocurrencies and blockchains to be launched in 2022. These include field research for cryptocurrencies, cryptocurrency trading, cryptocurrency storage, among others.

“Trading and access to liquidity centers: this means reducing complex access to fragmented, global and 24×7 markets; Digital Asset Custody: providing reliable custody (hence the purpose of blockchain trading); Surface support: thA way, it wants to provide more security and efficiency in motion and DVP digital assets; Profit capital efficiency: thus it wants to reduce the pre-financed nature of the business and Crypto as a service: make it easier for clients to explore the cryptocurrency market with little friction, “identified B3.

By 2022, B3 representatives said they will provide a public presentation on reinsurance. This will work on the Corda blockchain R3 and is a collaboration between the stock exchange and IRB Brazil.