The cryptocurrency exchange Bitfinex has gone beyond digital assets and launched stock derivatives traded with Tether (USDT).
New derivatives called “Europe 50 and Germany 30 permanent swap contracts” provide access to traditional stock markets. Europe 50 represents the STOXX index, which covers 50 stocks from 18 European countries, and Germany 30 represents the Deutscher Aktien Index (DAX), which includes the 30 largest German stocks traded on the Frankfurt Stock Exchange.
Bitfinex’s move is the first time a cryptocurrency exchange launches a stock product. “CME entered the crypto currency universe with Bitcoin futures,” said Paolo Ardoino, CTO of the company. Now Bitfinex is entering the traditional markets. We wanted to expand the company’s investment area and enable crypto users to enter traditional markets. Those who make up 80 percent of the volume on our platform are big traders… We are used to meeting their demands. “We are now applying the asset cross-trading strategies,” he said.
Europe 50 and Germany 30 permanent swap contracts allow up to 100 times leveraged trades. In the statement made by Bitfinex, it was stated that the products are traded in USDT, thus reducing forex and interest rate risks. “It is important that transactions are in USDT, because it makes trading smooth and efficient, and allows interesting games between different asset classes,” said Ardoino.
New variants are available in certain regions and only to verified users. CTO Ardoino is also the investors; He stated that they were able to perform these transactions after going through the due diligence process to confirm their identity, funding sources and banking relationships.
Bitfinex recently also for its users; He submitted a forex offer that could be traded in the Euro, Japanese Yen and British Pound.