Bitfinex – one of the world’s most popular crypto exchange – recently announced the launch of a margin trading service for Tether (USDT) against the U.S dollar. In a statement, the exchange said its aim for introducing this service is to enhance its stablecoin offering in order to remain consistent with the demand of users and the evolution of the market. According to the platform, users will be able to perform leveraged trades for USDT/USD trading pair. This means traders can borrow money from the exchange to exchange US dollar and USDT.
Bitfinex Plans to Add Margin Trading for More Stablecoin Trading PairsAfter the launch of this trading pair, the trading platform also plans to enable margin trading for other stablecoin trading pairs. In the announcement of the firm, the firms said it would enable margin trading for other stablecoins when they achieve enough liquidity. After the initial announcement of the exchange via its official Twitter page, it also revealed that it has enabled margin trading for BCH/SV (BSV) and BCH/ABC (BAB) pairs. This listing has raised a significant amount of interest on Twitter.
Tether and Bitfinex Have Had a Complicated RelationshipA section of the announcement yesterday states: “Today, introducing margin trading on Tether (USDT) against USD will not only allow for efficient price discovery, but it is also a crucial move for risk management, unveil the ability to take advantage of the exposure taken stablecoins. USDT will also be made available as collateral for margin positions together with a dedicated lending market.” According to a report earlier this month, Bitfinex recently announced the launch of USDT/USD and EURT/EUR (new stablecoin pairs). After the launch, the platform adopted what is known as “neutral” stance after years of absolute dependence on the now-controversial Tether (USDT). With the enabling of USDT margin trading and the launch of those new stablecoin pairs, the exchange is aimed at placing itself as a full-feature spot crypto exchange that equips its traders with various types of orders that they can leverage on. The scrapping of its absolute dependence on Tether has not gone without controversy. This also came after a couple of contending trading platform took similar steps, with many going for Paxos Standard (PAX) in addition to DAI and USDC. All of these have also been added to Bitfinex. Gemini exchange – a digital currency trading platform owned by the Winklevoss twins – also planned on launching its own US dollar-pegged digital currency (GUSD). The exchange plans to launch GUSD with the promise of being the “anti-Tether,” with regulated operations and fully audited account. According to a recent investigative report by Bloomberg, Tether raised a lot more questions than it answered. Questions were raised with the revelation that the firm behind USDT might have had the cash reserves it claimed earlier this year. However, the present location and status of the cash reserves are not known. This led to a lot of speculations in the industry, even the United States Department of Justice is still investigating the case. Tether (USDT) Price Today – USDT / USD
At the press time, Tether (USDT) is valued at $1 after an increase of 0.38 percent over the past twenty-four hours. The stablecoin currently boasts of a market cap of $1.89 billion with a trading volume of $4.81 billion over the past twenty-four hours.