Retail investors will soon have access to crypto trading options that were traditionally only available to institutional clients.
Andy Cheung, former chief operating officer at OKEx, plans to launch a crypto derivative exchange called ACDX by the end of Q2 2020. The Seychelles-based exchange aims to offer futures, options, callable bull/bear contracts, warrant contracts and fixed coupon notes.
“One of our main goals for the exchange is to provide retail investors with ... structured products that are more commonly used by accredited crypto investors and wealth managers,” Cheung told CoinDesk, noting the products could also give wealth managers more tools to better meet their clients’ investment objectives.
The exchange is expected to be launched in the second quarter of this year. It will trade more advanced products such as callable bull/bear contracts sometime after Q2, Cheung said.
While the exchange wants to become a global platform, it will start by developing its clientele in Asia using Cheung’s and other executives’ connections in Hong Kong and mainland China.
The firm aims to raise $40 million by token sales and equity investments from crypto funds, private equity firms and family offices from Europe and Asia, Cheung said.
“We have over $4 million so far and most of the money comes from our own funds,” Cheung said. “We are in talks with potential investors and likely to announce new investments in the next two months.”
The firm now has more than 25 employees, including eight developers that build and maintain the exchange’s infrastructure. It is focusing on developing the products and the platform to make sure products will be smoothly traded after the launch, Cheung said.
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.