Crypto Futures Exchange CoinFLEX To Offer Physically Delivered Bitcoin Futures Next Month

Announcements, News | January 8, 2019 By:

CoinfloorEX, a cryptocurrency futures exchange of British crypto firm Coinfloor, will be reorganized to offer trading of physically delivered bitcoin futures.

In an interview with Bloomberg, Mark Lamb, co-founder of Coinfloor, said that CoinfloorEX, which was launched in March 2018, will be renamed as Coin Futures and Lending Exchange, or CoinFLEX. Beginning next month, the Hong Kong-based entity will reportedly start offering futures contracts for bitcoin, Bitcoin Cash and ethereum, which can be leveraged up to 20 times, to retail investors based in Asia in February.

Lamb said all futures traded on the exchange will be physically-delivered, which means owners will be given the underlying cryptocurrency instead of a cash payment once the contracts expire.

“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,” said Lamb. “Volumes are reduced because of a problem of trust when it comes to cash-settled trades.”

Initially, all contracts on the platform will trade against Tether, a crypto that is pegged to the dollar. The company is also planning to introduce a contract to trade Tether against USD Coin, an ERC-20 stablecoin pegged to the US dollar that was developed by Centre, an open-source initiative from Circle and Coinbase.

“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 stable coin,” said Lamb.