Huobi Futures is tapping into the burgeoning stablecoin market with Tether (USDT) margined swaps. The swaps, which launched this week with 10 cryptocurrencies including bitcoin and Ethereum, are available to trade via the Web and API, with trading on APP soon to be supported.
The total market capitalisation of stablecoins has grown from $2.6 billion at the start of 2019 to $20 billion by late September 2020 – Tether, at $16 billion, leads the way. Huobi says the data indicates a clear desire and hunger to use stablecoins for the transfer of value across the cryptocurrency space, and offering a stablecoin-margined swap at this time can provide new benefits to traders.
In the new products, users can trade various perpetual swaps with only USDT. They have a linear payoff and no delivery date; therefore users could hold positions no matter how long they want as long as no liquidation occurs. The swaps are settled every eight hours and are executed at 00:00, 8:00 and 16:00(GMT+8).
The new swaps come with up to 125X leverage and Huobi says it only charges transaction fees for opening and closing positions. The firm adds it supports multiple order types including limit and trigger orders, IOCs and FOKs (fill or kills). There are also flash close and “follow a maker & taker” functions available.
“We are well aware of the growth in the stablecoin market and the amount of money that has been added to the ecosystem and want people to be able to make use of that,” says Ciara Sun, vice president head of global business and markets, Huobi. “In countering the risk of USDT price fluctuations, we also offer USDT/USD swaps with leverage up to 1000x. In this one-stop digital asset derivatives platform, we provide USDT-margined swaps, coin-margined swaps, coin-margined futures and USDT-quoted options to satisfy the diverse needs of individual and institutional traders.”