BitMEX to Launch EOS, LINK, XTZ, and ADA ‘Quanto’ Futures Contracts Soon

The popular Bitcoin and cryptocurrency derivatives exchange BitMEX announced the launch of ‘quanto futures’ for four crypto coins – EOS (EOS), Chainlink (LINK), Tezos (XTZ), and Cardano (ADA). This comes after BitMEX’s recent move that requires users to sign up for a mandatory ID verification procedure’.

BitMEX To Launch Quanto Futures Trading For LINK, XTZ, EOS, ADA

In an early morning blog announcement today, the Seychelles-based futures exchange said that it plans to launch ‘four new Altcoin/USDT underlying quanto futures contracts’.

This is a response to demands from existing users, BitMEX claimed. As per the official commentary:

…these new Altcoin/USDT contracts better reflect the underlying positions many traders are taking on spot markets. USDT pairs account for over 60% of overall Altcoin volume, and with these listings we are providing users with the trading options to better meet their needs

BitMEX acknowledges the DeFi craze that has gripped the cryptocurrency market left, right, and center. Hence, the LINK/USDT pair will now be available to traders as a part of the altcoin quanto futures offering.

Along with this, the XTZ/USDT futures pair has also made it to the list. BitMEX said that both are one of the most popular and highly traded altcoins amongst traders. And adding them to the exchange’s futures market is a move towards providing users with ‘the best coverage of liquid, high-quality products’.

BitMEX will also provide quanto futures contracts for ADA and EOS, which already attract significant trading traffic on the exchange. Over the course of the next few months, it plans to list more altcoin futures contracts for trading, the blog read.

All Quanto Altcoin Contracts Have A Fixed Bitcoin Multiplier

Continuing on its announcement, the exchange said that, by default, all quanto altcoin futures offerings have a fixed Bitcoin multiplier.

This is to allow traders to operate without holding the particular crypto coin (or for that matter, USDT) that they are trading. As a consequence, all margins are posted in XBT (BitMEX’s Bitcoin futures ticker), and traders ‘earn or lose XBT as the pairing’s exchange rate changes’.

Traders Can Trade All Day Long, But Only With KYC

BitMEX offering new futures contracts may come as good news for traders looking to dabble in more altcoin derivatives. But it must be noted that all trading activity will be permissible only after compliance with a mandatory KYC procedure.

As reported by CryptoPotato, the exchange announced the same on August 14. It is a 6-month long process that started on the 28th of last month and will continue until February 2021. BitMEX said that it is an important step towards meeting global regulatory standards and increase the legitimacy of the cryptocurrency ecosystem.

Additionally, the KYC process would safeguard users in the event of a ‘dispute, hack, or incapacitation.’

The post BitMEX to Launch EOS, LINK, XTZ, and ADA ‘Quanto’ Futures Contracts Soon appeared first on CryptoPotato.

Source: Crypto Potato