NEW YORK – Christian H. Cooper, founder of Resconte Capital, announced he has received formal patent pending protection for an innovative process that enables centralized pricing and trading of adult-use cannabis in the United States.
Block & Cable, the innovative process, allows for the centralized pricing and trading of industrial-scale cannabis with a serial expiration similar to that of other commodity markets.
Until now, the prospect of central cannabis trading was unlikely given that a single financial contract would not be able to price various unique combinations of cannabis strains, types of growth, humidity, THC levels, or other specific attributes required by multi-state operators (MSO) in an adult use consumer products.
With Block & Cable, a fixed series of cannabis attributes including cultivar or tetrahydrocannabinol (THC) are grouped into standardized “blocks” with economic values that are mathematically linked together to arrive at a centrally traded price at execution and the final price set at delivery. The process enables any market participant to arrive at the same observable price for any combination of delivered cannabis on an industrial scale.
“Block & Cable will support centralized trading in a rapidly growing industry even if the end to federal prohibition fails in Congress,” said Christian H. Cooper. “This way to put a single price on any type of cannabis across any regulatory environment at any forward date will accelerate institutional trading in cannabis in the United States.”
Centralized pricing of cannabis is cumbersome due to the thousands of variations across hundreds of products that a multi-state operator may require for consumer-facing adult-use products.
Block & Cable allows for the central pricing of cannabis in any state, giving regulators a central touch point for taxation and regulation. Multi-state operators will be able to source licensed supply up to a year in advance and the process will allow smaller cannabis growers an easier way to sell to an institutional market with a market-based price for asset-based lending.
Christian H Cooper has extensive experience in financial services. He has traded interest rate derivatives at Credit Suisse Group, Jefferies Group LLC, and Royal Bank of Canada. Cooper holds both Charter Financial Analyst and Financial Risk Manager.