Bitfinex Has Launched USDT-Settled Perpetual Contracts on European Equities

Bitfinex, one of the major digital currency exchanges in the world, has announced the launch of stablecoin Tether (USDT)-settled perpetual contracts. The newly-launched perpetual contracts are on two European equity market indices Europe 50 and Germany 30. With the launch of these equity index derivatives, the cryptocurrency exchange has expanded its trading platform beyond the field of cryptocurrency while giving users an opportunity to have exposure to the traditional stock markets.

According to a press release, the US Dollar (USD)-pegged stablecoin USDT-settled perpetual contracts are now available on the Bitfinex exchange’s trading platform. These perpetual contracts are in Europe 50 and Germany 30. Europe 50 refers to the STOXX Europe 50 index that consists of 50 stocks from eighteen European countries. While on the other hand, German 30 is a Deutscher Aktien Index also known as DAX 30. This Stock Index refers to the 30 of the largest German stocks that are traded on the Frankfurt Exchange.

The company says that perpetual contracts on Europe 50 and Germany 30 are set to go live on Monday, September 28, 2020, at 09:00 UTC. Each perpetual contract is settled in Tether (USDT) stablecoin and offers a trading leverage of up to 100X.

The Chief Technical Officer (CTO) at Bitfinex Derivates Paolo Ardoino said that it is the first time that an equity product has been launched by a cryptocurrency exchange. He said that CME entered into the cryptocurrency space by launching bitcoin futures. And now with the launch of equity index derivates, the crypto exchange Bitfinex is stepping into traditional or conventional markets.

Furthermore, he added:

“This is the first time that an exchange from the digital asset space has launched a product that bridges the gap with traditional stock markets, representing a significant milestone in the evolution of crypto as an established asset class.”

Moreover, he said that the settlement of perpetual contracts in the Tether (USDT) stablecoin is very important as it facilitates settlements and, “makes trading seamless, efficient, and powers interesting plays between different asset classes.”

Leave a Reply

Your email address will not be published. Required fields are marked *