TrueDigital Holdings (TDH), a subsidiary of swap execution facility trueEX, is launching pricing indices for Bitcoin and Ether, building on the success of similar benchmarks that leverage price data from a suite of crypto exchanges.
The new product provides institutional-grade resources and real-time information for those trading in cryptocurrency markets through a standardized reference rate and spot price index.
The launch of the new service, comprised of bid and offer pricing from top cryptocurrency market makers, signals growing commitment among the financial technology providers to the nascent space. It also comes at the time when mainstream interest in cryptocurrencies is skyrocketing.
A recent Thomson Reuters study showed that 20 percent of 400 finance firms surveyed are considering getting into cryptocurrency trading within the next 12 months.
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Several cryptocurrency exchanges and trading platforms will provide pricing data for TrueDigital’s benchmark, including Genesis Global Trading, XBTO Group, Circle, DV Chain, Hehmeyer and Altonomy, with more exchanges to be added over time. The new product aggregates the trade flow of these exchanges during a specific calculation window into a reference rate of the U.S. dollar price. Calculation rules are geared toward a real-time replicability in underlying spot markets.
The release comes on the heel of the announcement from CME Group about the launch of a daily price benchmark for Ethereum, in partnership with cryptocurrency trading platform Crypto Facilities.
Commenting on the news, Ricky Li from Altonomy, said. “By sourcing institutional pricing data from all over the world, trueDigital is establishing the first global benchmark for these digital assets. Their rigor and focus on building institutional-grade indices should be a boon to regulators across countless jurisdictions.”
“The approach that trueDigital has taken to establish institutional-quality benchmarks comes at a great time for the industry, delivering much-needed confidence to what remains a relatively young but important sector of the global financial marketplace,” added David Nuelle of Hehmeyer.