On Monday (January 7th), CoinFloor Group, "the longest established UK based cryptocurrency exchange company", announced that its subsidiary CoinfloorEX, "the world's first physically delivered bitcoin futures exchange," has been spun off to become CoinFLEX (Coin Futures and Lending Exchange), which is based in Hong Kong and owned by several high profile investors including Bitcoin Cash (BCH) advocate Roger Ver, launching next month.
CoinfloorEX has been offering physically delivered Bitcoin (BTC) and Bitcoin Cash (BCH) futures without much fanfare since launching in May 2018, and it has been catering to two types of clients:
- corporate and Institutional Investors;
- sophisticated investors and professional traders
According to a report in Bloomberg, CoinFLEX’s "contracts will trade against Tether," which means that "at expiry, parties who are short will deliver Bitcoin and receive Tether, while for longs it will be the other way round".
Per the press release, CoinFLEX will also "introduce the world's first stablecoin-to-stablecoin futures contract, offering Tether (USDT) against Circle's USD Coin (USDC)." CoinFLEX says that these stablecoins "are pegged to the U.S. Dollar and allow traders and investors to trade on global cryptocurrency markets without dealing with slow and expensive bank wires."
CoinFLEX is launching in February 2019 with 20X leverage and Trading Technologies' futures trading software. The new exchange is "incorporated in the Seychelles and is focused on the Asian retail trader market as well as the market for commercial hedging, including mining firms, OTC trading desks and global proprietary trading firms."
Obi Nwosu, CEO and Co-founder of Coinfloor Group, had this to say:
"I am happy to be able to announce the spin-off of CoinfloorEX. This news is validation of the market demand for a physically delivered crypto futures exchange. The team at Coinfloor is very proud to have been the first to develop, launch and operate a solution of this kind. We look forward to seeing the growth of CoinFLEX and wish it every success."
As for Mark Lamb, the CEO of CoinFLEX, he stated:
"We have an amazing team of employees and are backed by shareholders ranging from brilliant thought leaders in crypto to well capitalised and sophisticated market makers, in addition to Trading Technologies, one of the world's leading futures trading platforms in the traditional markets. We would not be here if it was not for everyone at Coinfloor and we are looking forward to continuing this incredible journey. 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."
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