Flying Tulip, an on-chain exchange building a unified trading and credit marketplace, said it has added new institutional participants, including Amber Group, Fasanara Digital, and Paper Ventures.
The firm said the new participants join a previously disclosed group of institutional backers that includes CoinFund, Lemniscap, FalconX, Nascent, Selini, and Susquehanna Crypto, among others. Flying Tulip has positioned the additions as further validation of institutional demand for on-chain market structure, where risk and reserves can be verified directly on-chain.
Flying Tulip is developing what it describes as a full-stack on-chain financial marketplace that brings spot trading, derivatives, credit, a native stablecoin called ftUSD, and on-chain insurance into a single cross-margin system designed to improve capital efficiency while making risk management more transparent.
A central element of Flying Tulip’s capital allocation design is an onchain redemption right it refers to as a “Perpetual PUT,” which it said is issued to primary sale participants. Under the described mechanics, eligible participants can burn the FT token and redeem up to their original principal in the same asset they contributed, subject to on-chain reserves and protocol parameters. Flying Tulip said redemptions are intended to be programmatically settled from a segregated on-chain reserve seeded from contributed capital, aiming to offer downside protection while retaining upside exposure.
The company also highlighted system controls intended to limit abnormal outflows, including rate limiting through a circuit breaker mechanism, along with onchain settlement for redemption and position management and a segregated redemption reserve for primary sale participants.
Flying Tulip said the announcement is informational and noted that any redemption right is programmatic, subject to reserves and parameters, and may be rate limited in certain conditions.
KEY QUOTE:
“This reflects continued institutional interest in verifiable onchain market structure where risk, reserves, and incentives are observable rather than assumed,”
Andre Cronje, Founder, Flying Tulip
