Hong Kong-based crypto exchange Bitfinex has just announced the launch of margin trading for Tether Gold (XAU₮).
According the official press release shared by the company, starting yesterday, platform users can trade the stablecoin with margin in pairs with the dollar, the USDT and Bitcoin.
In order to make use of this new functionality, an initial capital of 20% will be required. Users will be able to trade with a leverage of up to 5x.
XAU₮, the stablecoin issued by Tether Ltd., was launched just a week ago. Each token is backed by one troy fine ounce of gold stored in a vault in Switzerland. Tether claims its gold stablecoin is the only product that offers zero custody fees and has direct control over the physical gold storage.
According to the press release, Bitfinex will soon allow its users to borrow money to increase their trading positions, which increases both potential profits and losses.
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