Leading cryptocurrency exchange Binance has launched another asset for trading in derivatives category. Arguably, the numero uno cryptocurrency exchange in terms of trading volume, Binance has rolled out a triumphant testnet trial conducted back in November.
The media release also disclosed that the latest options contract will be not only priced but also settled using stable coin Tether (USDT).
As a portion of the news release, Binance highlighted the increasing interest for Bitcoin options as the main reason for the latest product offering. Earlier this month, for the first-time, Bitcoin options volume breached $1 billion, with aggregate open interest nearly hitting the $6 billion level.
Regarding the rollout, Binance CEO Changpeng Zhao opined that Bitcoin reaching $28,000 highlighted the rising interest and investment in crypto domain, stating:
“The crypto industry’s growth is in good part attributable to a combination of factors, including wider public education and institutional interest, innovation in DeFi protocols and smart contracts, and development of a robust derivatives market.”
Earlier this April, Binance entered the list of cryptocurrency exchanges offering Bitcoin options trading facility with the roll out of US-style Bitcoin options contracts. The key difference between the US and the EU formats is that the trader will be able to exercise only at contract expiry.
The earlier options contract offered by Binance also came under criticism as options writing, which would enable them to generate profits in the form of premium, was not facilitated for traders. As a result, expenses pertaining to Binance options were slightly on the higher side as arbitration is not possible.
The European style Bitcoin options trading facility is the latest offering in bustling December. It can be remembered that last week Binance started supporting SegWit address for deposits, implying that customers can deposit Bitcoins through their SegWit (Segregated Witness) address. Earlier, the exchange was supporting only withdrawals via SegWit addresses.
