Launch of Tether settled perpetual contracts by Bitfinex

Ritika Sharma
Ritika Kumari Sharma is an Economics Honors graduate from the University of Calcutta. She is completely into finance and believes that cryptocurrencies are the future. She is an enthusiast learner about the cryptocurrency and blockchain technology.
  • Bitfinex launches Tether-Settled equity index derivatives that track two European equity market indices
  • Chicago Mercantile Exchange (CME) moved into crypto with Bitcoin futures, with this Bitfinex is moving into regular markets
  • Unlike equity exchanges the contracts will remain open for 24/7 and not for a limited number of hours, 5 days a week

A digital asset trading platform Bitfinex launches Tether-Settled equity index derivatives that track two European equity market indices, Europe 50 and Germany 30. Europe 50 serves as the STOXX Europe 50 index housing 50 stocks from 18 countries of Europe and also caters a blue-chip depiction of supersector leaders in the region. Meanwhile the Germany 30 houses the Deutscher Aktien Index (DAX) of German’s 30 largest stocks that traded on Frankfurt Stock Exchange(FRA).

Chief Technology Officer of Bitfinex Derivatives, Paolo Ardoino mentioned that Bitfinex took the primary step from the digital asset space to launch a product to bridge gaps with the traditional stock market, housing a significant milestone in the evolution of crypto as an established asset class. He also mentioned that the Chicago Mercantile Exchange (CME) moved into crypto with Bitcoin futures, with this Bitfinex is moving into regular markets.

What does Bitfinex want?

Bitfinex wants to widen the universe of Investment and give exposure about the traditional market to the crypto traders on the same platform. Paolo Ardoino Highlighted that they are attuned to the requirements of high frequency traders and this offering will be able to enhance cross-asset trading strategies.

Benefits of Settling in USDT

They settle in Tether, a so-called stablecoin designed to maintain a value per token. As per Bitfinex this helps reduce the forex and interest rate risk. Paolo Ardoino added that it makes trading seamless, efficient, and can facilitate settlement in cross-asset trading strategies, risk management, and trimming.

Bitfinex mentioned to CoinDesk in an Email that unless there is significant economic development over the weekend, then it is expected lower volumes over the weekend than on weekdays in the normal course of trade.

About the launch

Unlike equity exchanges the contracts will remain open for 24/7 and not for a limited number of hours, 5 days a week. They will aim to offer rate balance via a means of putting +/-5% cap on the final market price from 4:30pm UTC till 8:00am UTC on the consecutive day. These new by-products are not available to everyone, though it is available in selected jurisdictions and only to “verified users”. Traders would be required to go through an alertness process to verify their existence, banking relationships, and source of income. 

In a report we found that recently Bitfinex also launched a forex offering, in which traders can settle euro, British pound, and Japanese yen for Tether (USDT).

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