- KuCoin's derivatives arm, KuMEX, announced plans to add support for Tether.
- USDT is now to become the second supported coin on the futures platform, starting on March 30th.
- Crypto futures trading has surged significantly in 2020, and KuMEX has revealed plans to add more assets later on.
While Bitcoin’s price may be on a sharp drop over the last several weeks, the volume of BTC derivatives is seeing a sharp rise. With the popularity of crypto derivatives, the industry is seeing the addition of new coins for futures trading. The most recent example of this is Tether (USDT), which was recently announced on KuMEX.
KuMEX is a rising star in derivatives trading, and a subsidiary of a crypto exchange, KuCoin. It announced yesterday, March 27th, that it plans to roll out USDT-margined Bitcoin perpetual contracts.
The move will happen quite soon, on March 30th of this year. However, the derivatives platform is already allowing users to deposit their Tether. They can do it via a public API, or the web, and it started receiving deposits on March 26th.
The announcement also revealed that KuMEX will allow traders to use up to 100x leverage. As mentioned, USDT will become the second crypto that the platform will support. However, new additions are soon to follow, including ETH, XRP, BCH, and BSV.
Crypto derivatives trading rises in popularity in 2020
The move comes soon after KuCoin received a new CEO, Johnny Lyu. Lyu stated that Tether perpetual contracts will be clearer and easier for new futures traders.
As many likely know, perpetual contracts are specific futures contracts that act as an agreement to purchase or sell a specific asset at a later date. They have no expiry date, and they are trading based on the price of an underlying index. The index for BTX/USD will consist of an average price of the pair across six different exchanges.
In addition, Lyu also stressed the importance of Tether as a stablecoin, which doesn’t suffer from volatility issues. Not only that, but KuCoin also revealed that it chose USDT because it is more stable than other stablecoins. It offers more in terms of market cap, as well as liquidity, and it is familiar to more users.
Now, after the addition of USDT, KuMEX’s daily trading volume of $100 million is likely to see further growth. Especially considering that perpetual contracts trading on crypto markets is becoming more popular, itself. Binance also reported a similar major surge in futures perpetual contracts’ trading volume in January of this year. Back then, BTC/USDT perpetual contracts were the most popular.