CoinFLEX, a company that is part of the crypto exchange Coinfloor, says it is the first company in the world that will provide bitcoin futures with physical delivery, starting next month in the Asian market.
CoinFLEX, which stands for Coin Futures and Lending Exchange, becomes part of a consortium of technology companies, including market makers and crypto investors.
Among the many supporters of the new company are Trading Technologies, Roger Ver, Mike Komaransky, Dragonfly Capital Partners, Global Advisors, B2C2, Amber AI, Grapefruit Trading and Alameda Research who together will provide the new platform with the right support in terms of credibility, capital and expansion in the market dedicated to crypto derivatives.
According to Bloomberg, moving from London to Hong Kong, Coinfloor co-founder Mark Lamb will be the CoinFLEX CEO and the first futures contracts offered will be for Bitcoin, Bitcoin Cash and Ethereum leveraged up to 20 times.
The futures will be available from February 2019.
Proud of the @CoinFLEXdotcom team! We are spinning out CoinfloorEX (by @Coinfloor). We are backed by @Trading_Tech , @rogerkver, @mkomaransky, Global Advisors, Dragonfly Capital Partners, @AmberAIGroup, @B2C2Group , @GrapefruitTrade, Alameda Research. https://t.co/SVjQIIuHoH
— Mark Lamb 💪 (@MarkDavidLamb) January 7, 2019
Physically delivering bitcoin futures simply means physically releasing the contract into the hands of the investors and, when they expire, they will be assigned the underlying crypto instead of a cash payment.
Replacing cash payments with the delivery of the cryptocurrencies would reduce the possibility of manipulating they crypto market that in itself is not yet regulated.
“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. Volumes are reduced because of a problem of trust when it comes to cash-settled trades“.
In addition, it seems that also Tether, the first stablecoin anchored to the dollar, is involved in the project. In fact, for short trades, BTC will be delivered, but USDT will be received at maturity.
Regarding Tether, Lamb said:
“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“.