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Some of the biggest names in the blockchain have given their weight to a new cryptocurrency derivatives exchange, signaling that the next bull market could be led by institutional investors.
Crypto derivatives platform Globe raised $ 3 million in seed investments to launch its Globe Derivative Exchange. The new platform aims to bring institutional investors to the world of cryptocurrencies. Investors in the early stages of the new venture include billionaire Tim Draper, blockchain investment fund Pantera Capital, and venture capital firm Y Combinator.
Pantera executive Paul Veradittakit cited growing institutional interest in cryptocurrencies as one of the main reasons his company decided to invest in Globe.
In a quote shared with Cointelegraph, Veradittakit said:
“We are seeing a wave of interest in crypto assets from major banks, fintech companies and portfolio managers. Globe has built the platform and products these sophisticated market players need and expect (…) in providing a next-generation platform for the cryptographic financial system “.
Globe has developed its own risk and match engine, which it calls Thor. The company claims Thor was built by engineers from major financial services firms including JP Morgan, BAML, Citibank, UBS, and Getco.
Crypto derivatives trading has exploded this year, with futures from BitMEX, HuobiDM, OKEx, and Binance seeing a notable increase in volumes. The surge in derivatives is just one of the many ways the digital asset industry has evolved since just three years ago.
A recent report by cryptocurrency exchange Kraken found that derivatives are “now at least 4.6 times the size of the spot volume” and that this trend is expected to continue.
Kraken says the use of leverage is one of the biggest benefits of derivatives platforms. On its official website, Globe claims to offer free leverage of up to 100x.
