CFO Andre Milanez said the product will be launched within the next six months.

B3, the Brazilian exchange, has confirmed that it intends to launch its first official product focused on the cryptocurrency market, Bitcoin (BTC) futures trading, within six months. The group’s chief financial officer, Andre Milanes, made the announcement during a conference call on Monday.

Milanese gave no details on how the product would work. It is not yet known whether B3 will partner or offer direct trading of Bitcoin futures, but the launch time for this product has been reported as relatively short. “We plan to launch bitcoin futures in the next three to six months,” he said.

Currently, institutional and retail investors in Brazil can trade 11 ETFs through B3 with access to cryptocurrencies, including Empiricus’ CRPT11 with Vitreo; NFTS11 investment; QBTC11, QETH11 and QDFI11 are all from QR assets, and META11, HASH11, BITH11, ETHE11, DEFI11, WEB311 are all from Hashdex. In addition, there are more than 25 investment funds authorized by the Securities and Exchange Commission (CVM) in Brazil that offer different types of access to the crypto-asset market.

Back in January, Jochen Mielke de Lima, B3’s chief information officer, stated that the Brazilian exchange would launch several crypto-related products in 2022, including Bitcoin futures and Ethereum (ETH) futures.

At that time, the executive emphasized that the Brazilian exchange has been closely following the cryptocurrency market since 2016 from a technological point of view.

According to the statement, B3 only had to decide whether the negotiations would be conducted against the US dollar or against the Brazilian real. Futures contracts require a benchmark index. So if the team decides to use the native currency of Brazil, a real crypto-asset index needs to be created, which doesn’t currently exist.

The B3 spokesman also said he was looking into data entry options for the country’s central bank digital currency, or CBDC for short.

B3 and cryptocurrencies
According to Jochen Mielke de Lima, in addition to futures on BTC and ETH, B3 also wants to offer services for national cryptocurrency exchanges and be a kind of “centralizer” of custody and settlement operations:

“We have about 30 national crypto exchanges operating here in addition to international ones. We could offer a service to simplify and standardize their operations. I believe she still has a lot to discover in the delivery of child custody services and in the settlement process.”
Mielke also explained that the cryptocurrency market is very similar to the regulated stock market in that it includes issuance, trading, settlement and custody. Therefore, he explained that B3 could help solve common problems between exchanges.

“We identify friction points that we can address, for example by helping our customers provide better access to their end customers,” he said.

Additionally, B3 plans to launch more crypto and blockchain-based products in 2022. Among them there are studies on a platform for asset tokenization, cryptocurrency trading, cryptocurrency storage and others.

“Trading and Access to Liquidity Centers: This means easing the complexities of accessing a fragmented, global and 24/7 market; Storage of digital assets: ensuring secure storage (hence the purpose of blockchain transactions); OTC Simplification: With this he wants to offer more security and efficiency in the movement and DVP of digital assets; Capital Efficiency Gain: Therefore, he wants to mitigate the pre-funded nature of operations and crypto as a service: make it easier for clients to explore the low-friction crypto market,” B3 pointed out.

In 2022, representatives of B3 envisage the official launch of the reinsurance platform. This will run on the Corda R3 blockchain and is a partnership between the exchange and IRB Brazil.

Source: CoinTelegraph

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