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Arthur Hayes, CEO of Bitmex, revealed that his platform wanted to launch short-term bonds guaranteed by Bitcoin. He also wants to allow him to buy S & P 500 and Nasdaq QQQ indices with BTC, particularly those in emerging markets.
"You can use Bitcoin and buy the S & P 500"
Talk in an interview with Luc Martin on his Venture Coinist Podcast, BitMEX CEO Arthur Hayes revealed that it was seeking to issue short-term bonds backed by Bitcoin and other financial products backed by BTC. Hayes said:
I want to create a future where exchanges and minors of the highest quality … will emit short-term Bitcoin links with the ecosystem.
"So, let's say you want to buy 30-day paper. Why can not you buy a 30-day BitMEX Zero Coupon Bond that pays an interest rate that reflects the market's determination of our credit risk? ", He added.
The CEO of Bitmex explained that over the coming months, his team will develop the specifications for this new type of bond.
In addition, Hayes explains that Bitmex has funded a new startup that will allow users to invest in the S & P 500 and Nasdaq's popular stocks using Bitcoin without the risk of "Bitcoin-USD".
… Hopefully this summer you will be able to use Bitcoin and buy the S & P 500 and Nasdaq QQQ indices … and there will be no Bitcoin-USD risk. You will send bitcoins. They convert it into dollars and allow you to buy an exchange. And when you want to leave, you sell the exchange, collect dollars, and then you recover your bitcoin.
According to Hayes, this bitcoin-backed product would open up "the most liquid and outstanding indices in the world" to emerging markets, in particular.
"So we hope this will allow people in emerging markets … to use their Bitcoins to access traditional stock indexes," he said.
Why Bitcoin is the key to Bitmex
Hayes also explained why Bitcoin technology is so important for BitMEX and the main reason for the success of his company.
For one, Bitmex only takes bitcoin as collateral. This allows him to ship a customer within 10 minutes, explains Hayes. That's because Bitmex can process a deposit or withdrawal without human intervention and without third party involvement such as a bank.
Bitcoin also allows Bitmex to be more flexible financially, for example to offer 100X perpetual exchanges. The Hong Kong-based platform launched its ETH-USD perpetual swaps in August 2018.
Hayes said that in just two months it had become the most liquid ETH-USD trading instrument.
"From the point of view of a speculator, it's great," he said. "I have Bitcoin and I want to speculate on the Ether price vs USD, and I want to get my money back in Bitcoin."
Given the success of its perpetual swaps, Bitmex is now looking to launch it for other altcoins (compared to the US dollar), said Hayes.
The CEO also revealed that users could expect a platform of bitcoin options that could launchmaybe in 12-18 months. "
Finally, Hayes said that Bitmex did not intend to engage in the internal token movement like Binance (BNB) or Huobi, as this would create more problems than it would solve.
It is complicated in terms of the legality of this token: is it a security? […] We have more than enough problems to sort out […] than to create a whole set of problems, because we have issued our own token for money we do not need and new problems that we do not need.
Will Bitmex-supported Bitmex products open institutional-quality trading to illiquid markets? Share your thoughts below!
Images via Shutterstock, Twitter
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