Well-known cryptocurrency trading platform Binance has just announced the launch of USDT-margined quarterly futures for Bitcoin and Ethereum, according to a press release shared with iHodl.
The new products, which are based on the stablecoin USDT, have just been added to the exchange’s existing offer in order to meet demand for BTC and other crypto products.
From now on, the users of the Binance Futures platform can now select futures contracts according to whether the contracts are settled in native cryptos (coin-margined) or stablecoins (USDT- or BUSD-margined), and also whether the contracts are open-ended perpetual or have a delivery date.
The first pairs of USDT-margined quarterly futures are BTCUSDT (quarterly 0326), whose expiration and delivery is March 26, 2021, and ETHUSDT (quarterly 0326), with expiration and delivery on March 26, 2021.
Remember that Binance Futures was originally launched in October 2019 with just one product line, USDT-margined Bitcoin perpetual futures.
Today, Binance’s USDT-margined BTC perpetual futures lead the industry, with $627.5B in traded volume in January 2021, according to third party data from Bybt.
The incorporation of USDT-margined quarterly futures will allow users to access a wider choice of products and enable more advanced users to employ hedging and trading strategies according to their preferences.
Due to the fact that USDT-margined contracts are linear futures products quoted and settled in USD stablecoins, they allow users to easily calculate their returns in fiat currencies.
Conversely, coin-margined futures can be attractive to users such as miners and long-term investors since settlement and returns are in cryptocurrencies. When crypto prices increase, the value of crypto assets held as collateral rise correspondingly and offer stronger hedging against fiat inflation.
After the addition of USDT-margined quarterly futures for BTC and ETH, Binance now offers 166 derivatives products.