Gibraltar and Bullish Shake Up Crypto with New Regulated Derivatives Clearing Framework

Bullish Joins Forces with Gibraltar to Revolutionize Crypto Derivatives

Gibraltar is making waves in the crypto world, teaming up with powerhouse exchange Bullish to roll out a groundbreaking regulated framework for crypto derivatives clearing. This bold move aims to slice through the chaos by separating trading and settlement functions, bringing a new level of clarity and security to the game.

Peter Thiel-Backed Bullish Leads the Charge

Bullish, the crypto exchange with Peter Thiel's backing, has locked arms with the Government of Gibraltar and the Gibraltar Financial Services Commission to craft this game-changing regulatory framework. They're setting their sights on clearing and settling crypto derivative contracts, and they mean business.

Risk Management and Oversight Take Center Stage

In a fiery press release dropped on Tuesday, Bullish made it crystal clear that they're on a mission to inject the same level of risk management and oversight into crypto that's been a staple in traditional markets. Tom Farley, the CEO of Bullish, didn't mince words, pointing out that "no regulation specifically addresses the clearing needs of the crypto industry" right now.

"While Central Counterparties have become more robust in other asset classes, this initiative will bring that same robust risk management and regulatory oversight to the crypto clearing space that EMIR & Dodd-Frank brought to traditional derivatives markets."

Tom Farley

Collateral and Settlement Currency: The Mystery Ingredients

The framework's got some intriguing mystery ingredients—certain cryptocurrencies could be used as collateral and settlement currency, though the press release keeps us guessing on which ones. It's also throwing open the doors to more institutions that can hold collateral, a move Bullish says will supercharge market participation and trust.

A Regulated Clearing House: Transparency and Risk Reduction

This new model is all about introducing a regulated clearing house that stands apart from the exchange itself. It's a strategic play to ramp up transparency and slash risks for everyone in the market.

Gibraltar's Pioneering Spirit and Bullish's Ambitious Plans

Nigel Feetham KC MP, Gibraltar's Minister for Financial Services, is beaming with pride, declaring that Gibraltar is "renowned for pioneering clear regulation" and embracing cutting-edge tech. They were the first jurisdiction globally to introduce legislation for firms using distributed ledger technology, and they're not slowing down. Bullish is gearing up to launch its clearing services and dive into options trading later this year, though they're keeping the exact timeline under wraps for now.

Bullish: A Heavy-Hitter Backed by Block.one

Launched in 2021 by Brendan Blumer's Block.one, Bullish came out swinging with a staggering $10 billion in funding. Their capital arsenal includes both cash and crypto, kicking things off with an initial $100 million, 164,000 BTC, and 20 million EOS. And they didn't stop there—Bullish later flexed its muscles, raising an additional $300 million through a strategic investment round.