Bitmex to Deply Bitcoin Zero Coupon Bond

The prominent cryptocurrency derivatives exchange is in the process of deploying a bitcoin zero coupon bond very soon according to Arthur Hayes, the head honcho of BitMEX.

This would be another line of fixed income offerings present within the cryptocurrency market.

Firms such as Nexo, SALT, Celsius, ETHLend, BlockFi and several other firms allow individuals to deposit their cryptocurrency assets and earn interest.

The fixed income offering by BitMEX would make it to where another large entity within the emerging sector would facilitate loans within the space according to Arthur Hayes, the CEO of BitMEX.

“Something that we’re really keen on working on is fixed income. So, in the next few weeks, we will be revealing that we have the first bitcoin zero coupon bond with a few counterparties that we have identified” noted Hayes.

As such, BitMEX is set to launch a market allowing individuals holders of bitcoin to lend out their digital asset to companies within the sector.

A few investors may have concerns about potential counter-party risks. The bitcoin bonds are said to be “in the form of an ISDA loan” with transparency of the counter-parties.

The firm is known for its perpetual swaps, its margin trading, and being based out of the Seychelles.

BitMEX isn’t open to U.S. customers due to regulatory issues.

Furthermore, this product follows additional announcement by European companies who are in the process of launching their own “world’s first institutional grade bitcoin-denominated bond” according to J.P. Morgan. The two firms are Argento Access and London Block Exchange.