Bitfinex to Launch Crypto Options, a Gold-Backed Stablecoin

Crypto exchange Bitfinex is planning to expand its product offerings by introducing crypto options and gold-backed digital currency, among others.

The prospect was revealed by the exchange's chief technology officer Paolo Ardoino on Tuesday while talking to The Block in a podcast.

Bitfinex’s sister company Tether operates the widely used USDT stable coin, which is backed by US dollars. The new proposed bullion-backed digital currency will also be issued by the same company, considering its proposed name as Tether-Gold. Ardoino, however, did not disclose further details of the upcoming cryptocurrency.

The company aims to bring the crypto options as early as the first quarter of next year and is currently working with external market makers to ensure Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term.

Per the CTO, the developers of the crypto exchange are now focused on the development of Tether-based swaps, and the company aims to leverage the wide market of Tether for its new products.

In addition to that, the crypto exchange partnered with a number of industry players to enable its clients to purchase a range of products using crypto gift cards.

“It's important that people can see the farther value of having Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term rather than just trading back and forth between Bitcoin and USD or whatever,” Ardoino said.

Changing trend in the industry

Crypto derivative offerings are becoming the new trend of the nascent industry. Many industry players are trying to enter the sector, amid the massive demand for trading with such products.

Bakkt, which launched physically-delivered Bitcoin futures last September, saw a significant surge recently despite a dim launch. Meanwhile, platforms like Binance are offering leverage up to 125x on crypto-to-crypto futures contracts.

CME Group in the US is also set to introduce Bitcoin options next year.

However, in Asia, the Hong Kong regulator is skeptical of the crypto futures and recently issued a warning against such contracts.