The trading platform confirmed the move in a blog post. As reported, foreign currencies will be tied into the new contracts integrated into its spot exchange.
The unveiling of the offering means investors can now invest in swap contracts. BitMEX said it took the decision owing to the rising demand from retail and corporate investors patronizing the platform. According to the protocol, the move is geared toward expanding its coast to the traditional financial sphere. However, the FX swap contracts only allow users to trade with a maximum of 20 contracts tied with foreign currencies.
The head of Quants at BitMEX, Daniel Egloff, remarked that BitMEX FX perps function as a transparent exchange-traded contract. Egloff said it usually allows FX traders “to go long and short as a taker or maker for which we offer a one basis point fee rebate, which is unique in the industry.” He added that FX perps avail a new technique for institutional investors to initiate “synthetic crypto pairs to arbitrage – for example, Bitcoin quoted in non-USD currencies.”
Additionally, the unveiled FX swap contracts allow a widened range of “crypto-margined contracts, including products that will allow traders access a range of currencies and commodities.”
This FX swap contract unveiling is coming a few weeks after the founders of the protocol encountered legal charges instituted by the DOJ. The founders, Arthur Hayes, Samuel Reed, and Ben Delo, were indicted for violating the AML/KYC regulations in the United States. Reportedly, they paid millions of dollars in fines over the issue.
BitMEX unveiled the spot exchange last May as part of its expansion crusade. Reportedly, the company launched the spot exchange with seven trading pairs. Then, the firm’s CEO, Alexander Hoeptner, assured BitMEX customers of the future incorporation of features and trading pairs on the spot exchange.
He also promised that the trading exchange would continuously evolve to allow customers to participate in the imminent crypto revolution. Now, BitMEX has incorporated FX swap contracts on the spot exchange.
Additionally, the protocol remarked that its spot exchange has the potential to emerge as a top ten biggest spot exchange across the globe. BitMEX further reinstates its commitment to improving the features of the trading platform.
However, in early July, the Seychelles-based protocol delayed BMEX token listing. BitMEX cited harsh market conditions as the reason behind the decision. The exchange revealed that BitMEX said that it intends to carry out the token listing in an atmosphere capable of offering better rewards to customers. However, it promised to conduct the listing as soon as the ongoing crypto winter is over. BitMEX added that listing on its new spot exchange remains an utmost priority and will put plans in place to make it feasible.
BitMEX overturned $17 billion in bitcoin futures volume last month. This development consequently pushed the protocol forward as one of the largest derivatives exchanges in the world.
