B2C2 OTC and Crypto Liquidity Provider Debuts New Gold Derivatives Product Using Bitcoin
B2C2– an over the counter trading platform has launched the first gold trading using a bitcoin product. The crypto liquidity provider B2C2's new product will be trading against bitcoin. This is what the firm describes as an important step in the safe-haven trading space.
B2C2 was launched in 2015 and received regulatory approval earlier this year in the UK. Its API service's allow it to offer bulk crypto purchases.
According to the B2C2 CEO, clients will now be able to trade an ounce in gold and have it settled in bitcoin. He added that an ounce which is approximately $1500 is the minimum quantity a client can trade.
The Benefit of Trading Gold Synthetically
Synthetic trading allows clients to take a long or short position without selling the underlying asset. The advantage of trading gold synthetically (or bitcoin) simplifies the trading process as compared to using cash. Boonen added that the gold derivative also represents various asset/product activities.
Report on Bitcoin Contract.
As previously reported by Cointelegraph, gold, as well as cryptocurrencies (BTC), has shown increasing strength. A debate heated up with Peter Schiff as the main proposer claiming that gold, in the end, out-do bitcoin.
In the meantime, the B2C2 product will use bitcoin as its settlement asset. During the previous month, this trend of bitcoin went on with the launch of Bakkts which will also occur exclusively on bitcoin.
Boonen- the former managing director of B2C2 joined Kraken – a major cryptocurrency exchange in July 2019. This will help the company to lead its new future bitcoin operations.
Just like bitcoins, this derivative product allows clients to settle trade in other tokens. In the future, B2C2 is planning to launch other products but this will be done when there is a clear direction.