Singapore-based digital currency exchange Huobi is reportedly planning to issue XRP derivatives contracts in the “very near future” as the digital asset technology firm expands its line of products and services.
Huobi To Launch XRP Futures “Very Soon”
Similar to how other major cryptoasset exchanges are diversifying their business strategy to better serve different types of investors, Huobi’s general counsel Josh Goodbody told CryptoBriefing that the trading platform provider will be introducing XRP futures contracts through its Huobi Derivatives Market (DM) “very soon.” Goodbody, who’s also the head of global sales and institutional business at Huobi, said that the company intends to launch more cryptocurrency contracts and other types of financial products this year.
Although Goodboy did not reveal the exact date on which XRP futures would be available on Huobi’s platform, he said they would be offered in the near future and that “additional types of cryptoassets” may be listed on the exchange. Goodboy added that “the time between [different product] launches [could] get shorter and shorter.”
At present, Seychelles-registered crypto derivatives trading platform BitMEX and Hong Kong-operated exchange Bitfinex offer different types of digital currency futures contracts. Futures contracts, which are essentially agreements that allow traders to exchange an asset at a particular price at a certain date in the future, are also offered by Chicago’s CME and the Cboe. Both these exchanges introduced bitcoin (BTC) futures in December 2017.
Huobi’s Futures Contracts Not Available To US Traders
In November 2018, Huobi had announced its plans for launching its own derivatives markets (DM), which was introduced last month. Traders are now able to purchase both bitcoin and ether (ETH) futures contracts through Huobi’s DM. EOS futures were also added in late December 2018.
Currently, Huobi’s crypto futures contracts may be purchased by investors in almost all jurisdictions except for those located in Singapore, China, and the US.
On January 25th, Huobi announced that its derivatives markets would allow traders to take both short and long positions on litecoin (LTC), which allows for “arbitrage, speculation, and hedging.” Commenting on Huobi’s new offerings, Goodboy remarked that the company had been “quietly confident” about its new crypto futures contracts.
“Continuing To Build Institutional-Grade Products”
Significantly, Huobi’s DMs have recorded approximately $10 billion in trading volume since the start of this year. Last week, Huobi revealed that its total trading volume had exceeded $20 billion since the company launched.
Explaining Huobi’s business development goals, Goodbody remarked:
In the long term, we are going to continue building institutional-grade products, to further support, and capitalise, on the belief we have in the continuing involvement of institutional players.
Malta-based cryptoasset exchange Binance has also started the new year by launching new services including its over-the-counter (OTC) trading desk. Other trading platforms looking to expand their offerings such as Hong Kong’s AAX crypto exchange recently purchased proprietary trading software from the London Stock Exchange technology group.