Coinfloor Spinoff CoinFLEX Looks to Physically-Delivered Crypto Contracts

Coinfloor Spinoff CoinFLEX Looks to Physically-Delivered Crypto Contracts

British cryptocurrency exchange Coinfloor has spun off its physically-delivered crypto contracts platform CoinfloorEx, which will now be known as CoinFLEX. Notably, the spinoff will be launching a contract that will let users trade Tether (USDT) against USD Coin (USDC), two stablecoins. 

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Through CoinFLEX, Leverage Futures Trades up to 20x

Last year, Coinfloor said it would be launching a dedicated bitcoin futures exchange, CoinfloorEx, that was then touted as being poised to be among the first platforms to physically deliver bitcoin via settled bitcoin futures contracts.  

Alas, Coinfloor announced this week CoinfloorEx was being split from its parent company, Coinfloor Group, the operator of the U.K.’s oldest Bitcoin exchange. The newly independent crypto venture is now dubbed CoinFLEX.

Coinfloor will maintain an equity stake in CoinFLEX, while a majority owernship position will be maintained by an investor group that includes individuals like Roger Ver and companies like Alameda Research.

CoinFLEX will be a Seychelles-based company for the added regulatory flexibility the platform can enjoy there.

Based out of Seychelles, the spinoff will be lead by Coinfloor co-founder Mark Lamb, who will serve as the first CEO of the new exchange. 

The platform will principally serve Asian institutional investors with physically-delivered futures contracts for bitcoin, bitcoin cash, and ether, all of which will be traded against Tether. CoinFLEX will allow its traders leverage up to 20 times and will pay out in crypto, not cash, for settled long positions.

Beating the Competition in Style?

To differentiate its offerings from competitors, CoinFLEX is set to launch the world’s first stablecoin futures contract.

Per the press release, the exchange will offer Tether trades against Circle’s USD Coin (USDC), which are both pegged to the U.S. Dollar.

“Tether is the most liquid, highest volume stable coin that exists right now and seeing the resolution of recent issues and attestations by banks and outside firms make us confident in using it as a stablecoin,” CoinFLEX CEO Mark Lamb told the press.

Moreover, the CEO projected that physically-delivered crypto contracts would explode in popularity in the coming years.

“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 said.

What’s your take on physically-delivered crypto contracts? Share your views in the comments section.  

Images via Pixabay

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