The encrypted derivatives exchange Blade is invested by Coinbase and other institutions for $4.3 million with up to 150 times leverage

On August 13th, the cryptocurrency derivatives exchange Blade announced the completion of a $4.3 million seed round of financing, including investors Coinbase, SV Angel, A.Capital, Slow Ventures, Justin Kan and Adam D'Angelo. It is reported that this transaction The plan is officially launched in three weeks.

Prior to founding the company, Blade CEO Jeff Byun and his co-founder Henry Lee created the Orderahead platform, which was eventually acquired by Square in 2017.

According to a report released on August 12, Blade's goal is to provide perpetual swap contracts based on cryptocurrency, which also provides three new improvements.

First, the perpetual contract will be developed using a standard simple contract. Second, the perpetual contract will be settled using USDT stable currency and used as a margin. Third, for cryptocurrency transactions, the leverage of the transaction can be up to 150 times.

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Unlike conventional futures contracts, there is no concept of a maturity date for a perpetual contract. As shown in the report, Blade is expected to launch 7 different trading pairs (involving BTC, Monroe, Dogecoin, Zcash, Rebo, Coin and USDT).

It is reported that due to the stricter regulation of cryptocurrencies by US government agencies, US investors will not be able to legally participate in the trading of the Blade Exchange. Blade itself is an offshore entity with a US subsidiary that is primarily oriented to the East Asian region.

“This is a branch market,” Byun told TechCrunch. “Either you become an exchange like Coinbase, Gemini or Bitrex, which caters to the highly regulated US market or is a less regulated non-US market exchange, but This is the place with the most trading volume."

Although the platform is still three weeks away from the official launch, its founders expressed their ambitions, and Byun commented:

"In the long run, we want to be the CME of the cryptocurrency world. Coinbase and Coin's are building the infrastructure of the cryptocurrency world, and I think we are the same. In a sense, derivatives are the core of risk transfer. We hope to build the foundation layer of risk transfer in the cryptocurrency market."