Ripple has led a $25 million funding round for Bitnomial Exchange, a U.S.-based crypto and derivatives platform.
The exchange is preparing to launch a new perpetual futures trading platform, Botanical. This platform will cater to U.S. traders and offer regulated futures and options products, marking a significant development in the U.S. crypto derivatives market.
Bitnomial introduces a botanical trading platform for U.S. users
Bitnomial has announced the upcoming launch of its perpetual futures trading platform, Botanical, designed for U.S.-based traders. The platform is beta testing, with the early access program operating through Bitnomial’s CFTC-registered futures commission merchant, Bitnomial Clearing, LLC. Botanical aims to provide an innovative and compliant alternative for U.S. traders who often resort to decentralized exchanges or VPNs to access futures markets.
The new platform will feature traditional futures and options products and focus on compliance with U.S. regulatory standards. Bitnomial CEO Luke Hoersten highlighted the platform’s mission to offer a seamless and secure experience for traders in the United States.
RLUSD stablecoin to be used as settlement standard
A vital feature of the Botanical platform will be the integration of Ripple’s RLUSD stablecoin as the standard for settling perpetual futures contracts. Bitnomial’s newly approved clearinghouse, Bitnomial Clearing, LLC, will handle this settlement process, ensuring compliance with regulatory requirements. The collaboration between Ripple and Bitnomial represents a strategic move to introduce regulated crypto derivatives into the U.S. market.
Ripple’s CEO, Brad Garlinghouse, has joined Bitnomial’s governing board to help guide the company’s direction. In a statement, Garlinghouse expressed his support for Bitnomial’s vision of bringing offshore trading models into the U.S. market, saying it creates a significant opportunity for compliant derivatives trading of digital assets like XRP.
Legal challenges and on-chain activity
Bitnomial’s recent funding success comes amid its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). The exchange filed a lawsuit against the SEC on October 11th, arguing that the regulator has wrongly claimed Bitnomial’s yet-to-be-launched XRP futures product violates federal securities laws. Bitnomial contends that the product has already been self-certified with the U.S. Commodity Futures Trading Commission (CFTC).
Ripple continues to develop its RLUSD stablecoin, which has seen significant on-chain activity in recent weeks. On October 16th, Ripple minted and transferred 9 million RLUSD tokens twice between its treasury wallets. This follows a larger minting of 18 million RLUSD on Ethereum earlier that day. Ripple has positioned the RLUSD stablecoin for use in payments, tokenization, and decentralized finance, with plans to integrate it alongside its native XRP token for cross-border transactions. With its continued focus on regulatory compliance and product innovation, Bitnomial is poised to become a key player in the U.S. crypto derivatives, bolstered by its partnership with Ripple.