Crypto derivatives exchange Bitget to list USDC as collateral for margin trading
The Singapore-based crypto trading platform has inked a partnership with stablecoin issuer Circle.
Derivatives exchange Bitget is set to become one of the first exchanges to list USD Coin (USDC) as collateral for trading crypto derivatives.
The development comes courtesy of a strategic collaboration between the Singaporean crypto derivatives trading service and USDC stablecoin issuer Circle, as reported by Crowdfund Insider on Monday.
Bitget will support USDC margin for Quanto Swap Contract trading as part of the partnership, a move the exchange says will provide more liquidity for the market. USDC now joins Bitcoin (BTC), Ether (ETH), EOS, and XRP as accepted margins for Quanto Swap contracts.
Bitget launched Quanto Swap contracts back in April allowing traders to utilize one or more cryptocurrencies as margins for cross-currency trades.
Quanto Swaps are said to solve the issues related to inverse contracts as well as Tether (USDT)-paired contracts, especially in the area of capital utilization and costs.
Since Quanto Swaps are cross-currency trades with multiple margins, traders can switch markets without having to convert cryptocurrencies.
The collaboration with Circle will also reportedly scale Bitget’s trading channels. USDC will also be available for purchase on the exchange via debit and credit card payment channels among others.
Related: Stablecoin firm Circle to go public in $4.5B blank-check deal
CoinMarketCap data ranks Bitget as the eighth-largest crypto derivatives exchange with a 24-hour volume of almost $4 billion as of the time of writing.
Back in March 2020, the platform began working towards expanding its reach to the United States, securing a license from the U.S. Financial Crimes Enforcement Network. At the time, its 24-hour volume was about $1 billion.
The exchange was also among a list of platforms granted a temporary exemption from Singapore’s crypto exchange licensing regime.
In an interview with Cointelegraph earlier in July, Bitget CEO Sandra Lou stated that crypto exchanges must prioritize regulatory compliance. Indeed, financial regulators across the globe are increasing their scrutiny on exchanges as governments push more stringent policies.