FRNT’s recent announcement that they had secured funding from CoinGeek founder Calvin Ayre introduced a new powerful, institutional focused fiat-settled cryptocurrency derivative platform to the world of Bitcoin SV (BSV). To learn more about the company, we reached out to Stéphane Ouellette, CEO of FRNT.
We asked the CEO, before anything else, about the innovations FRNT is bringing to the investment world. “The only fiat-settled crypto derivatives product that is widely available for institutional investors in North America and beyond is the CME BTC future,” Ouellette began with. “While this product has undoubtedly been successful (averaged over USD ~500M notional in volume/day in May) it really has no peer for single-coin exposure on a slew of other cryptocurrencies including Bitcoin SV (BSV).”
Ouellette then went on to explain what this means for institutional investors. “Essentially what the CME Bitcoin Future allows is for institutions that may not legally or operationally be able to buy/sell crypto assets to purchase a derivative that settles and operates in a framework they are comfortable with,” he said. “It is our thesis that the fiat-settled derivatives toolkit could use an enormous amount of more development. In our early roadmap, in addition to unique single-coin Synthetic Exposure Mechanisms (SEMs), we plan to offer products on composite indices, themed indices and different spread products that will allow institutional investors an opportunity to participate in the space like never before.”
We wanted to know more about Synthetic Exposure Mechanisms (SEMs), the derivative type that FRNT offers, and how it differs from what investors might be used to. “Our SEMs are based on traditional Contract For Difference (CFD) derivatives but targeted towards institutional and accredited investors,” he replied. “CFDs essentially allow two parties to take opposing exposures on a particular index.