Former Morgan Stanley Developers Launch Cryptocurrency Derivatives Exchange

·

The cryptocurrency derivatives landscape is evolving rapidly, and a new player has entered the arena with ambitious goals. A team of eight former core developers from Morgan Stanley has launched Phemex, a next-generation crypto derivatives exchange based in Singapore. Backed by deep financial engineering expertise and Wall Street-grade technology, Phemex aims to redefine speed, reliability, and scalability in the digital asset trading space.

According to the team, Phemex’s infrastructure is engineered to match the technical standards of traditional financial powerhouses like Nasdaq—a bold claim that underscores their mission to bridge institutional finance with decentralized markets.

Built for Speed and Stability

At the heart of Phemex lies a proprietary trading architecture developed over six intensive months. The platform features three core engines: a matching engine, a trading engine, and a risk management engine—all designed for ultra-low latency and high-frequency trading (HFT) performance.

Jack Tao, co-founder of Phemex and former executive at Morgan Stanley with 11 years of experience, emphasized the exchange’s technological edge:

“We are the first exchange to truly bring Wall Street-level technology into the global crypto derivatives market. Our systems are built on proven financial engineering principles that support stability, scalability, and microsecond-level execution speeds.”

This institutional DNA enables Phemex to process trades up to ten times faster than many existing crypto platforms. For traders—especially algorithmic and institutional participants—such performance can translate into significant competitive advantages.

👉 Discover how advanced trading technology is reshaping crypto markets

High Leverage and Broad Market Access

From day one, Phemex has offered powerful tools tailored for both retail and institutional traders. The platform supports 100x leverage on Bitcoin (BTC) and Ethereum (ETH) futures contracts, enabling sophisticated hedging and speculative strategies.

Additionally, Phemex introduced perpetual contracts for Ripple (XRP) early in its launch phase, expanding options for traders looking to gain exposure to alternative cryptocurrencies beyond the top two assets.

But the vision extends far beyond crypto-native products. The team plans to roll out derivative contracts tied to traditional financial instruments, including:

This hybrid approach positions Phemex not just as a crypto exchange, but as a convergence point between traditional finance and digital assets—a move that could attract institutional capital seeking diversified exposure in a single, high-performance environment.

Strong Start with Growing Volume

Since its soft launch on November 25, Phemex has demonstrated promising traction. According to Jack Tao, the exchange’s BTC/USD perpetual contract has consistently achieved daily trading volumes of approximately 1,000 BTC—a strong signal of early market adoption.

To support this growth, Tao assembled a team of more than 30 senior developers, many with backgrounds in top-tier financial institutions. Their collective experience in building mission-critical systems ensures that Phemex maintains resilience under extreme market volatility—a common challenge in the crypto space.

Regulatory Alignment in Singapore

Phemex’s base in Singapore places it at the center of one of Asia’s most progressive regulatory environments. In November, the Monetary Authority of Singapore (MAS) proposed extending its regulatory framework to cover crypto derivatives trading, bringing instruments based on Bitcoin and Ethereum under the purview of the country’s Securities and Futures Act.

This development could be pivotal for Phemex. As a Singapore-registered entity, it stands to benefit from clearer compliance pathways and potential recognition as a regulated platform. The MAS initiative reflects a broader trend: regulators increasingly acknowledging the need to supervise—rather than restrict—digital asset derivatives.

For traders and investors, this means greater confidence in market integrity, transparency, and investor protection—key ingredients for long-term industry maturation.

👉 Learn how regulated platforms are driving trust in crypto trading

Roadmap: Expanding Product Offerings

Looking ahead, Phemex is preparing to introduce options trading, further broadening its suite of financial instruments. Options will allow users to implement complex strategies such as spreads, straddles, and hedging portfolios with defined risk parameters—features long demanded by professional traders.

The platform also continues to optimize its user interface and risk management systems, ensuring accessibility without compromising on performance.

Frequently Asked Questions (FAQ)

Q: What makes Phemex different from other crypto derivatives exchanges?
A: Phemex was built by former Morgan Stanley developers using Wall Street-grade technology. Its matching engine and risk systems are designed for ultra-low latency and high-frequency trading, offering performance comparable to traditional financial markets like Nasdaq.

Q: Does Phemex offer leverage? If so, how much?
A: Yes. Phemex offers up to 100x leverage on Bitcoin and Ethereum perpetual contracts, allowing traders to amplify their positions while managing margin requirements.

Q: Is Phemex regulated?
A: Phemex is registered in Singapore. While it currently operates under self-imposed compliance standards, recent proposals by the Monetary Authority of Singapore (MAS) may soon bring crypto derivatives under formal regulation—potentially benefiting compliant platforms like Phemex.

Q: What assets can I trade on Phemex?
A: Currently, Phemex supports BTC, ETH, and XRP perpetual contracts. The roadmap includes expansion into traditional asset classes such as stock indices, forex, commodities, and energy derivatives.

Q: Can institutional traders use Phemex effectively?
A: Absolutely. With low-latency execution, robust API support, and HFT-friendly architecture, Phemex is engineered to meet the demands of institutional-grade trading operations.

Q: What are Phemex’s future plans?
A: The exchange plans to launch options trading and expand its product suite to include derivatives linked to traditional financial instruments, aiming to become a unified platform for both crypto and conventional markets.

👉 Explore cutting-edge trading platforms built for the future of finance

Final Thoughts

Phemex represents a new breed of cryptocurrency exchange—one rooted in financial engineering excellence rather than speculative hype. By combining Wall Street infrastructure with crypto-native innovation, the platform addresses critical gaps in speed, security, and scalability.

As regulatory frameworks evolve and institutional interest grows, exchanges like Phemex could play a pivotal role in mainstream adoption. Whether through high-leverage instruments, cross-market derivatives, or upcoming options offerings, the platform is positioning itself at the forefront of the next wave of digital finance.

With strong early performance metrics and a clear technological advantage, Phemex is one to watch in 2025 and beyond.

Core Keywords: