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Bitfinex Launches Tether-Settled Perpetual Contracts Based on European Equities

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Omkar Godbole
·2 min read
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Cryptocurrency exchange Bitfinex has launched tether (USDT)-settled perpetual contracts that track two European equity market indices.

  • Perpetual contracts on Europe 50 (EUROPE50IXF0: USTF0) and Germany 30 (GERMANY30IXF0: USTF0) will go live at 09:00 UTC on Monday, the firm said in a press release.

  • Each contract offers up to 100x leverage and will be settled in stablecoin tether (USDT).

  • A perpetual contract is similar to a traditional futures contract, but has no expiry and mimics a margin-based spot market.

  • The STOXX Europe 50 includes 50 stocks from 18 European countries and provides a blue-chip representation of supersector leaders in the region.

  • Meanwhile, the German 30 or DAX 30 is a stock index that represents 30 of the largest and most liquid German companies that trade on the Frankfurt Exchange.

  • “This is the first time that an exchange from the digital asset space has launched a product that bridges the gap with traditional stock markets, representing a significant milestone in the evolution of crypto as an established asset class,” said Paolo Ardoino, CTO at Bitfinex Derivatives.

  • Using tether – a so-called stablecoin designed to maintain a value of per token – will facilitate settlement in cross-asset class trading strategies, hedging and risk management, Ardoino added.

  • The perpetual contracts will be open for trading 24/7, unlike equity exchanges which are open for business for a limited number of hours, five days a week.

  • As such, traditional market investors may turn to Bitfinex’s perpetual swaps on data- or event-heavy weekends for price discovery ahead of Monday’s opening bell.

  • “Over the weekend, we may reasonably expect lower volumes than on weekdays in the normal course of a business unless there are significant economic developments over the weekend, such as a central bank policy shift, etc,” Bitfinex told CoinDesk in an email.

  • The exchange will aim to ensure price stability by putting a +/-5% cap on the final mark price from 4:30 PM UTC until 8:00 AM UTC on the following day.

Also read: Bitfinex Invests in Derivatives Exchange Built With Bitcoin’s Lightning Network

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