Cryptocurrency liquidity provider B2C2 has launched the market’s first product for trading gold directly against Bitcoin (XAU/BTC).
The firm says the launch marks the beginning of its expansion beyond the core crypto focus and that client demand made XAU/BTC a natural first choice, underpinned by a significant rally in so-called deflationary assets over the past six months that saw gold appreciate 15% and Bitcoin’s price roughly double.
The new product will allow institutional clients to trade gold synthetically with B2C2 OTC Ltd., which is authorised and regulated by the Financial Conduct Authority in the UK, via B2C2’s electronic trading platform. Clients will also be able to settle in the underlying metal via blockchain-powered tokens that correspond to physical ownership of gold in vaults.
“We’re excited to launch the first gold/bitcoin product,” says Max Boonen, founder and CEO of B2C2. “The current macro environment, dominated by uncertainty over economic growth and inflation, is prompting central banks to rethink monetary policy and market participants to reassess the likely path of interest rates. Conflicting narratives abound, fuelling market activity, and we expect demand to only grow for ways to gain and manage exposure to deflationary assets such as gold and bitcoin. We look forward to expanding our electronic market-making offering across instruments and asset classes, in line with our clients’ needs.”