ConsenSys, the New York-based blockchain application startup, has announced today it is partnering with TrueDigital, a new affiliate of online interest rate swap marketplace trueEx, in an effort to develop a benchmark price for ethereum’s ether cryptocurrency.
According to an announcement, the two firms are planning to design a target reference index for the price of ether (ETH), the second largest cryptocurrency by total value, as an initial step towards the goal of making more crypto trading products available for institutional investors.
The partnership news comes alongside trueEx’s announcement today that the company is planning to launch a derivatives marketplace for cryptocurrency assets.
The first product is expected to be a bitcoin contract on trueEx’s swap trading platform, but marketed under the TrueDigital brand, the firm said. The contract is currently pending approval from the U.S. Commodity Futures Trading Commission (CFTC).
The development arises from the increasing interest in cryptocurrency-related derivative products from institutional investors, the two firms said.
As reported by CoinDesk, the CFTC has already authorized trading of bitcoin futures offered by CME Group and the Chicago Board Options Exchange (CBOE), which launched in December of last year.
Although currently at a nascent stage, the plan, if approved, may spark the creation of exchange products for ethereum with an official price index reference.
“Institutional investors and commercial partners are ready for a regulated and liquid marketplace to gain exposure to and hedge these increasingly important digital currencies and commodities.” said Sunil Hirani, founder of TrueDigital, continuing:
“But the marketplace is sorely lacking the necessary foundation, infrastructure and platforms that institutional investors have come to expect in other important markets.”