To eliminate overreliance on a single type of stablecoin, Singapore-based crypto exchange Bit.com has rolled out USD perpetual trading, starting with BTC/USD and ETH/USD pairs.
Therefore, the ETH/USD and BTC/USD perpetual products will be accessible to Unified Margin Mode (UM) users without expiry. Furthermore, the users will settle them using USD since they will not be required to hold the USD Coin (USDC) stablecoin in their accounts.
This approach became a reality following the launch of the Unified Margin system in September 2021 because traders were allowed to use all assets in their accounts as collateral when trading any product. As a result, it eradicated the urge for traders to hold USDC.
By establishing the USD perpetual products, Bit.com intends to reduce confusion about different types of stablecoins. They will also act as a stepping stone toward launching USD options, a complex crypto derivative product meant to enhance the security of direct USD settlement.
The crypto exchange plans to incorporate more stablecoins into its USD basket. Additionally, it eyes more fiat-backed stablecoins for diversification purposes.
Despite USDC’s market capitalization trailing that of Tether (USDT) by approximately $10.9 billion, its value has surged by more than $16 billion during the present bear market.
This can be attributed to the fact that Circle, the USDC issuer, regularly supplies transparency reports. The latest shows that the stablecoin is adequately collateralized with $55.7 billion held in short-term cash and U.S. treasuries.
On the other hand, USDT recorded outflows, suggesting general apprehension among holders.
USDT’s market cap stood at $65.8 billion, whereas that of USDC sat at $54.9 billion during intraday trading, according to CoinMarketCap.
To meet crypto users’ tastes, needs, and preferences, Bit.com has diversified different options. For instance, the exchange launched a new savings product and USDT margined futures to drive financial product innovation, Blockchain.News reported.
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Source: https://blockchain.news/news/bit.com-rolls-out-usd-perpetual-trading-for-diversification-purposes