Binance Futures has added Bitcoin as an option to be used as cross collateral. Traders are now able to leverage their BTC held on the Exchange wallet to borrow Tether (USDT) on the Futures platform.
The Futures platform of the leading cryptocurrency exchange by trading volume, Binance, announced earlier today on adding a cross collateral function for Bitcoin, in addition to Tether (USDT). By this move, the Binance Futures platform adjusts itself to a broader market and joins its biggest competitors, such as BitMEX, that offer Bitcoin cross collateral.
The “Cross Collateral” option appears in the Binance Futures wallet interface. Once the users have determined how much USDT they would like to borrow, they can initiate the “start borrowing” process. The users will receive the Tether (USDT) in their Futures wallet, while the collateral amount of Bitcoin will be deducted from the spot wallet.
To learn more about the Binance Futures platform, you can visit our beginner’s guide to the platform. CryptoPotato offers its readers 10% discount on the platform fees when registering a new account by using this link.
Similarly, when the traders are satisfied with their position, they can repay the loan from the “collateral” menu in their Futures Wallet. According to Binance guidelines, 1 USDT is the minimum amount to borrow, while the maximum is 1,000,000 per account.
Interestingly, last month the company announced its first-ever cross collateral asset – Binance USD (BUSD). It works on the same principle as BTC. However, the announcement stated that traders could leverage BUSD to borrow USDT with an interest rate of 0%. So far, the popular exchange hasn’t clarified if the interest level of Bitcoin borrowing will be the same.
As Cryptopotato reported yesterday, Binance Futures reached a new all-time high trading volume with over $5 billion.
Aside from its Futures platform developments, Binance peer-to-peer also continues to expand. After adding P2P trading for the Vietnamese Dong (VND) in January and the Russian Ruble (RUB) in February, the company made new additions on Tuesday.
Users can now operate with the Euro (EUR), the Ukrainian hryvnia (UAH), and the Malaysian Ringgit (MYR). They can use these three currencies to buy and sell Bitcoin, Ethereum, BNB, BUSD, and USDT.
The company also outlined that trading with the new currencies will have zero transaction fees on their P2P platform.