- EverMarkets Exchange is launching a new derivatives platform
- Users would have access to cryptocurrencies and traditional assets
Investors will now have one more way to have exposure to the cryptocurrency market. This time, users will be able to bet on the price of Bitcoin (BTC) through the launch of EverMarkets Exchange (EMX)’s derivatives platform. This is according to a report released by CoinDesk on July 1st.
Investors Can Now Bet On Bitcoin
This company was founded in 2017 and decided to open crypto exchange for a very selected audience just in May 2019. Now, the market is available for different participants around the world, however, U.S. citizens are excluded from the platform, as in many other exchanges.
The co-founder of the platform Craig Austin talked with CoinDesk about the plans that the company has. He mentioned that they want to allow customers to have access to world market trading derivatives tied to traditional and crypto assets. This would allow investors outside the United States to have access to virtual currencies and equity markets.
Currently, the firm is offering a bitcoin perpetual swap contract and a U.S. 500 Equity Index perpetual swap that is based on the S&P 500. These work as future contracts without an expiration date and the underlying asset is never delivered.
EMX is currently registered in Bermuda, even when it is not licensed as an exchange or financial services business by any jurisdiction.
Austin commented about the regulations they implemented for users to operate on their platform:
“A lot of those markets don’t have strong KYC and AML procedures. We see the regulatory environment changing over the next 12 months and we want to be positioned that we’re trading on the platform but we’re also ready for more exchanges, more regulations.”
There have been 2,500 individuals registered to trial the platform and the entire list has been granted access just a few weeks ago. It is worth mentioning that the company is not using blockchain technology to power its operations and that they consider that distributed ledger technology (DLT) is not yet mature to support a widely used trading platform.
Nonetheless, in the future, the firm wants to make the trading platform compatible with different blockchains, allowing users to collateralize their trades using different virtual currencies. The firm was able to gather $1 million in funds from Bain Capital Ventures and the co-founder of Skype Jaan Tallinn. In the near future, they could gather $2 million more, as Austin commented.
The firm is also planning to work on a spot market for cryptocurrency traders, but there is nothing confirmed about it.