OKEx Exchange Introduces Tether (USDt) Settled Futures On Seven Cryptocurrency Derivatives
South Korean based, OKEx cryptocurrency exchange introduces Tether (USDT) settled futures for seven top cryptocurrencies including Bitcoin (BTC), Ethereum (ETH) and XRP. To ensure a stable and fair price of USDT, the company will use oracles to pull prices from four top exchanges in daily trading volume.
OKEx Launched Tether Settled Crypto Derivatives
In a press release on Tuesday morning, OKEx exchange confirmed the launch of Tether settled futures on multiple cryptocurrencies. The new development allows users to trade derivatives across the platform and receive USDT during settlement on BTC, ETH, XRP, TRX, Bitcoin Cash (BCH), Bitcoin SV (BSV) and Eos (EOS).
However, the exchange keeps the leverage ratios on the pairs capped at 100X to reduce the front risk of the derivatives before the market picks up.
OKEx’s financial market director, Lennix Lai, praised the launch of Tether claiming users will be able to benefit greatly from linear contract trading reducing confusion from fiat settled contracts.
“Most of the time, users are not willing to hold altcoins as margin, and they also see inverse contracts itself are complicated to understand. We see this linear contract would be an open door to many new retail traders.”
The Ever-Growing Crypto Derivatives Market
Lai believes the crypto derivatives market is reaching maturity with institutional and retail investment growing steadily during the year. He expects OKEx to launch more stable coin-settled futures in the near term.
“We would continue to research and add stablecoin-based derivatives to offer a simpler hedging instrument for traders who normally book their profit and loss in USD value.”
In the past quarter, the futures market welcomed institutional-based, Bakkt futures which have seen substantial trading volumes in the past week despite a slow start to trading in September. Furthermore, Binance BTC futures, barely two months old, surpassed the 1 billion dollar mark on Oct. 23 showing hunger from retail investors on crypto derivatives.