Binance introduces USDT-margined quarterly futures
Binance has launched USDT-margined quarterly futures for bitcoin and ethereum. The new products add further diversification in Binance’s wide offerings to meet rising demand for bitcoin and other cryptocurrency products.
Users on Binance Futures can now select futures contracts according to whether the contracts are settled in native cryptocurrencies (coin-margined) or stablecoins (USDT- or BUSD-margined), and also whether the contracts are open-ended perpetual or have a delivery date.
The first pairs of USDT-margined Quarterly Futures are:
BTCUSDT (Quarterly 0326), with expiration and delivery on 26 March, 2021
ETHUSDT (Quarterly 0326), with expiration and delivery on 26 March, 2021
Binance’s USDT-margined BTC perpetual futures saw USD627.5 billion in traded volume in January 2021, according to third party data from Bybt.
With crypto adoption expected to accelerate, the addition of USDT-margined quarterly futures will give users more choice in their portfolio management and enable more advanced users to employ hedging and trading strategies according to their preferences.
Binance Futures first launched in October 2019 with only one product line, USDT-margined Bitcoin perpetual futures. Following Binance’s success of being the largest cryptocurrency spot exchange by traded volume, users were also drawn to the Binance Futures’ fast and stable matching engine.
As USDT-margined contracts are linear futures products quoted and settled in USD stablecoins, it allows users to easily calculate their returns in fiat currencies. Usage of stablecoins (USDT or BUSD) as collateral across these futures contracts (ie, against BTC, ETH, etc), eliminates the need to convert to other cryptocurrencies and avoids conversion fees.
Conversely, coin-margined futures can be attractive to users such as miners and long-term investors since settlement and returns are in cryptocurrencies. When crypto prices rise, the value of crypto assets held as collateral increase correspondingly and offer stronger hedging against fiat inflation.