Crypto futures trade Coin Futures and Lending Exchange (CoinFLEX) will introduce stablecoin-to-stablecoin futures contract, providing Tether (USDT) towards Circle’s USD Coin (USDC), the corporate said on a Monday.
Established final yr as CoinfloorEX, the platform will relaunch in February as CoinFLEX with Trading Technologies software program and connectivity, and an Asian retail buyer focus. It will supply futures contracts for Bitcoin, Bitcoin Cash and Ethereum that may be leveraged up to 20 instances. CoinFLEX’s contracts will commerce towards Tether.
CoinFLEX is a spin-off from the Coinfloor Group, the UK’s oldest Bitcoin trade. The firm is owned by a consortium that features Trading Technologies, which develops buying and selling software program for brokers and cash managers, Bitcoin.com CEO and Bitcoin Cash promoter Roger Ver, crypto dealer Mike Komaransky, Dragonfly Capital Partners, Global Advisors, B2C2, Amber AI, Grapefruit Trading and Alameda Research.
Coinfloor Group retains an fairness stake in CoinFLEX and several other key group members have been transitioned to the brand new firm. Coinfloor Group co-founder Mark Lamb has relocated from London to Hong Kong to run the brand new trade as CEO.
“We have an amazing team of employees and are backed by shareholders ranging from brilliant thought leaders in crypto to well capitalized and sophisticated market makers, in addition to Trading Technologies, one of the world’s leading futures trading platforms in the traditional markets,” Lamb commented.
“The market needs physical delivery in order for derivatives to become an order of magnitude larger than they are today. We are ready to serve crypto’s needs and massively grow the market.”
One of the trade’s key differentiators is that every one futures traded on the platform can be bodily delivered. This signifies that when the contracts expire, house owners can be given the underlying cryptocurrency as an alternative of a money fee.
“Crypto derivatives could become an order of magnitude larger than spot markets and the main thing that’s holding back that growth is the lack of physical delivery,” Lamb told Bloomberg. “Volumes are reduced because of a problem of trust when it comes to cash-settled trades.”
The announcement of the upcoming launch of the CoinFLEX platform comes at a time when an growing variety of companies are wanting to supply bodily delivered Bitcoin futures. Intercontinental Exchange (ICE), the proprietor of the New York Stock Exchange, plans to introduce such contracts shortly as a part of its crypto enterprise referred to as Bakkt.
Bakkt lately raised US$182.5 million from a bunch of excessive profile traders and enterprise capital companies together with the Boston Consulting Group, Microsoft’s enterprise capital, PayU and the fintech arm of Naspers to drive institutional entry for digital property, together with service provider and shopper makes use of, the corporate said in December 2018.