6th Mar 2020 - 9:46am

Futures trading on Tether Gold brings arbitrage opportunities between traditional exchanges and crypto

Submitted 06/03/2020 - 9:46am

Digital asset trading platform Bitfinex has launched a perpetual swap trading on Tether Gold (XAU₮), a digital token backed by physical gold, enabling arbitrage opportunities with the incumbent exchanges.

Investors in digital assets will be able to place bets on the world’s most enduring asset while also seeking out opportunities that emerge between the crypto space and the traditional financial system. Futures trading began on the Tether Gold/Tether pair (XAUTF0/USTF0) at 06/03/2020 8:30 AM UTC. The perpetual swap pair will allow up to 100x leverage. 

The launch of futures on Tether Gold will support a variety of trading strategies, while facilitating arbitrage opportunities between Bitfinex and traditional exchanges such as Interactive Brokers (IB). As an exchange with a growing community of crypto hedge funds and High Frequency Trading (HFT) firms, the launch of futures on Tether Gold cements Bitfinex’s place as a platform supporting highly sophisticated investment strategies.

“This is one of the best examples of an arbitrage opportunity between a traditional exchange or interactive broker and a crypto exchange, made possible by Tether Gold,” says Paolo Ardoino, CTO at Bitfinex. “Many of our customers have expressed interest in such a product and are excited about the many opportunities that it offers.”

Futures contracts enable traders to buy or sell assets at a specified price and date in the future, providing a means of hedging and offsetting risks, as well as an opportunity to multiply profits. Trading will only be available in certain jurisdictions, and is exclusive to verified users.
 
XAU₮ is a digital asset offered by TG Commodities Limited. One XAU₮ token represents one troy fine ounce of gold on a London Good Delivery gold bar. 

Tags Cryptocurrency Trading & Execution