Delta Exchange, a crypto derivatives platform, announced on Monday the listing of Tether Gold (XAUT) perpetual contracts.
Per the press release shared with Finance Magnates, the exchange will offer a maximum leverage of 20x to traders for the newly listed contract. The trading with the new perpetual has started at 9 am (EST).
Tether, along with TG Commodities, launched the physical gold-backed digital currency in January following “growing demand for a digital asset that provides exposure to the world’s most enduring asset and a geopolitical need for an alternative financial system.”
Commenting on the new listing, Pankaj Balani, CEO of Delta Exchange, said: “The introduction of Tether Gold (XAUt), the digital token, backed by physical gold onto the Delta Exchange platform is significant in opening a new sector of trading that will allow traders access to physical gold. These futures contracts will provide a means of hedging to aid in the offsetting of risk.”
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Bullion on rising
Holders of XAUt are able to exercise ownership of gold while avoiding drawbacks associated with physical gold, such as high storage costs and limited accessibility.
Available as an ERC-20 token on the Ethereum blockchain and as a TRC20 token on the TRON blockchain, each token represents ownership of one fine troy ounce of gold. These units can be transferred to any on-chain addresses.
The perpetual contract came when bullion prices are soaring globally, while stocks and digital currencies are seeing consistent down trends due to the COVID-19 outbreak.
“We have received good demand for trading Futures on gold-backed crypto-assets for some time now and as the Gold prices spike, in the backdrop of Coronavirus scare and global markets sell-off, we expect to see good trading activity in XAUt Futures,” Balani added.