BBOD, GMEX Launch Hybrid Cryptocurrency Derivatives Platform

The collaborative offering aims to combine the speed of centralized trading processes enabled by the GMEX Fusion suite with the security of BBOD’s decentralized wallet technology, which gives cryptocurrency traders sole custody and control of their assets. Individual traders can create their own specialized wallet using BBOD’s smart contract system, where they can deposit and withdraw digital currencies that can be leveraged as collateral and traded as Ethereum-based futures contracts.

“At the GMEX level, we are continuously monitoring positions as opposed to looking at something at the end of each day,” says Hirander Misra, CEO of GMEX Group and chairman of GMEX Technologies. “So whatever collateral clients are posting into those wallets, they are optimized at any given time based on their buy-and-sell activity.”

The wallets technology is connected to the GMEX Technologies centralized matching engine, which is designed to process 1.25 million orders per second with an average latency of 75 microseconds. As part of the GMEX Fusion suite, it will also provide risk management, market surveillance, position monitoring, credit checking, margining and close-outs, where positions are deemed too risky or in danger of default. The project involved creating a crypto index where bids and offers are marked against the market for real-time position-keeping and margining.

Piotr Arendarski, co-founder and chief economist at BBOD, says the platform is targeted at both retail and professional investors. All trading activity will take place on the GMEX platform, which supports Ethereum-based derivatives contracts. BBOD’s wallet system, combined with blockchain technology, can be used to settle trades automatically without the use of a private key or authorization from a centralized exchange.

“We integrate our smart contract wallet system and blockchain technology to settle profits and losses of traders,” says Arendarski. “This is done automatically using algorithms that are audited by us.”

The combined offering is now live and available to institutional investors looking to gain exposure to cryptocurrencies through Ethereum futures. Looking ahead, BBOD plans to continue building out the platform and to expand into markets such as Asia.