Major investors including Coinbase is now backing a new cryptocurrency derivatives exchange that is yet to be launched.
The exchange platform called Blade, according to TechCrunch reports on Monday, is planning to go live in a few weeks, focusing on perpetual swaps.
Jeff Byun and Henry Lee, who had previously launched a delivery start-up which crypto-friendly payments firm Square acquired in part in 2017, also according to TechCrunch reports on Monday. Some of the same investors are in to back their new Blade venture which are brought in by the two investors.
Investors in the $4.3 million seed round aside Coinbase includes SV Angel, Slow Ventures, Twitch.tv co-founder Justin Kan, Quora co-founder Adam D’Angelo and A.Capital.
The exchange platform, ‘Blade’ is taking a focus on perpetuals – a derivative product like a futures contract, though it has no expiry or settlement date but they seem to be the fastest growing segment of cryptocurrency trading,” according to Byun report to TechCrunch.
Additionally, it allows traders to take a position on the future value of cryptocurrencies against the U.S. dollar and swaps can be used to make bets on the price on one cryptocurrency against another.
Hopefully, by offering simple contracts, Blade hopes to compete with other offerings alike from rival exchanges. It’s also offering leverage as high as 150x on BTC/USD and BTC/KRW with margin and settlement in the stablecoin tether (USDT) as well.
Blade is targeting the keen crypto trading markets in Asia. U.S. and investors will not be allowed to use the platform, due to local regulatory issues. Korean won pair suggested.
Byun told TechCrunch that;
“Either you have exchanges like Coinbase or Gemini or Bitrex that controls the U.S. market that are highly regulated or the exchanges that takes care of the non-U.S. market that are much less regulated, It’s kind of a bifurcated market but actually that is where most of the volume is.”
Credits; Daniel Palmer
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