Bitnomial raises $25M and launches Botanical, a U.S. crypto futures platform offering bitcoin, XRP futures, and more.
Bitnomial announced on Tuesday that it has successfully raised $25 million in a funding round led by Ripple Labs. The company also launched a new crypto futures trading platform in the U.S. called Botanical. This development marks a significant step forward for Bitnomial. It has gained approval from the U.S. Commodity Futures Trading Commission (CFTC) to manage designated contract markets. With this approval, Bitnomial can now offer bitcoin futures and options trading to U.S.-based investors.
The Botanical platform, which is still in closed beta, will allow users to trade perpetual futures, traditional futures, and options. Bitnomial’s idea is to offer a regulated and innovative solution to replace the existing perpetual trading that relies on DEXes and VPN-based workarounds. Bitnomial CEO Luke Hoersten stated that the launch of Botanical is part of the firm’s goal of providing compliant, transparent, and secure trading for crypto investors.
Bitnomial Partners with Ripple to Launch XRP Futures Platform
Ripple CEO Brad Garlinghouse backed Bitnomial’s effort, saying the company could introduce offshore trading models into the U.S. derivatives market. Further, he said that Bitnomial’s approach could have a major effect on the market for digital assets, including products like XRP futures. The two firms will also partner with Bitnomial to integrate Ripple’s RLUSD stablecoin to settle perpetual futures on the new platform.
The timing of this news is quite peculiar, as it arrived the week Bitnomial sued the U.S. Securities and Exchange Commission (SEC) last week. The company says that the SEC accused it of offering an unregistered security in its XRP Futures product, which has not even been launched in the market. The legal fight around XRP classification as security began in 2020. At that time, the SEC accused Ripple of selling the token as an unregistered security and raising $1.3 billion this way.
The approval received from CFTC in 2020 can be considered a key step for Bitnomial. Because the company became one of the few American-based companies allowed to offer contracts on bitcoin futures and options. Ultimately, this regulatory green light has allowed the company to grow its service offering. It also offers the opportunity for many more derivative products within the crypto trading space. With the launch of Botanical, Bitnomial is positioning itself as a key player in the rapidly evolving crypto derivatives space.
