Hong Kong-headquartered CoinFLEX, a physically delivered cryptocurrency futures exchange, announced the launch of its centrally traded repo market. The repo market aims to bridge the gap between directional perpetual traders, spot traders, borrowers and lenders and give investors access to highly liquid lending, borrowing and earning opportunities without the need to work through the channels of the traditional repo market, such as banks or other intermediaries.
Mark Lamb, CEO of CoinFLEX said in a statement: “The creation of the repo market is a direct response to market demand for fair, transparent and flexible trading for all market participants. Introducing deliverable perpetual futures gives traders access to highly liquid, leveraged derivatives with the option to choose delivery, which also allows a new risk mitigation tool for investors.”
“The CoinFLEX Repo Market with CoinFLEX Deliverable Perpetual Futures gives investors the opportunity to have the benefits associated with traditional trading in a new interest-rate market for crypto where they can capture the yield associated with their investments. In today’s uncertain yield environment in traditional finance, the ability to capture yield on cryptocurrencies is a substantial benefit for either dollar- or crypto-based investors.”
Launched in early 2019, CoinFLEX caters to individual traders as well as the commercial hedging market, which includes mining firms, OTC trading desks and global proprietary trading firms and was the first to open an initial futures offering on coins that have not launched. The crypto exchange created the repo market and perpetual futures for cryptocurrencies to produce a trading environment that benefits market participants by increasing liquidity and significantly lowering capital costs. It’s traded hundreds of millions of contracts per day over the last twelve months, and investor support includes over $10 million in funding from Polychain Capital, Digital Currency Group, Dragonfly Capital, B2C2 and Grapefruit Trading.