A new cryptocurrency derivatives exchange that hasn't yet launched has already won backing from major investors including Coinbase.
Called Blade, the exchange platform is planning to go live in a few weeks with a focus on perpetual swaps, TechCrunch reported Monday.
The firm was founded by Jeff Byun and Henry Lee, who had previously launched a delivery startup that crypto-friendly payments firm Square acquired in part in 2017. The two have now brought some of the same investors in to back their new Blade venture.
Aside from Coinbase, investors in the $4.3 million seed round included SV Angel, A.Capital, Slow Ventures, Twitch.tv co-founder Justin Kan and Quora co-founder Adam D’Angelo.
Blade is taking a focus on perpetuals – a derivative product like a futures contract, but has no expiry or settlement date – because they are “arguably the fastest growing segment of cryptocurrency trading,” Byun told TechCrunch.
As well as allowing traders to take a position on the future value of cryptocurrencies against the U.S. dollar, swaps can be used to make bets on the price on one cryptocurrency against another.
Blade hopes to compete against other similar offerings from rival exchanges by offering simple contracts. It's also offering margin and settlement in the stablecoin tether (USDT), as well as leverage as high as 150x on BTC/USD and BTC/KRW.
As the Korean won pair suggests, Blade is targeting the keen crypto trading markets in Asia. U.S. investors will not be allowed to use the platform, due to local regulatory issues.
Byun told TechCrunch:
Image via CoinDesk archives
Read more about
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.