Brazilian Stock Exchange B3 to Begin Bitcoin Futures Trading

In addition to Bitcoin futures trading, B3 will also launch Ethereum futures.

Brazilian stock exchange B3 has confirmed its plans to allow Bitcoin futures trading within six months. The exchange CFO Andre Milanez announced the plans while making a conference call on Monday. According to the report, Milanez stated the timeline for the project was three to six months. However, it remains unclear whether B3 will be building its infrastructure for the project or partnering with another company.

Milanez’s revelation is in line with earlier statements by the Director of Information Technology at B3, Jochen Mielke de Lima. Recall that in January, Mielke de Lima stated the exchange would launch several crypto products in 2022 including Bitcoin futures. He further stated that the exchange had been following technological developments in the ecosystem since 2016.

At that time, Mielke stated that it was unclear if the reference index would be the US dollar or the Brazilian real. The new announcement may suggest that progress has been made on that front.

Beyond Bitcoin Futures Trading

In addition to Bitcoin futures trading, B3 will also launch Ethereum futures. However, while B3 has its eyes on the crypto futures market, its sights are set far beyond that.

 “We are identifying points of friction that we can help solve to face it, such as helping our customers provide the best access to their end customers,” said Mielke. He also noted that B3 was exploring ways to use data from the country’s central bank CBDC.

Additionally, it intends to provide custodial services and settlement operations. Mielke said:

“We have around 30 national crypto exchanges, apart from the international ones that operate here. We could offer a service to facilitate and standardize their operations.”

Also, B3 has plans to launch other blockchain and crypto-based products in 2022. Plans include studies on a platform asset tokenization and cryptocurrency trading, among others. Again, the exchange may partner with IRB Brazil to launch a reinsurance platform that will work on the Corda blockchain R3.

Currently, institutional and retail investors have exposure to cryptocurrencies through 11 ETFs offered by B3. Also, there are several pre-approved investment funds by the Securities and Exchange Commission (CVM) that offer varying levels of exposure to the crypto-assets market.

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Babafemi Adebajo

An experienced writer and Fintech enthusiast, passionate about helping people take charge of, scale and secure their finances. Has ample experience creating content across a host of niche. When not writing, he spends his time reading, researching or teaching.