Bitfinex Crypto Exchange Launches Margin Trading for Stablecoin Tether

Published at: Dec. 22, 2018

Hong Kong-based cryptocurrency exchange Bitfinex has introduced margin trading for stablecoin Tether (USDT), according to a blog post published Dec. 21.

Bitfinex has launched margin trading for the USDT/USD pair, which would purportedly lead to more efficient price discovery and enable users to hedge the exposure taken on stablecoins. Along with a dedicated lending market, USDT will be available as collateral for margin positions, the post further reads.

While stablecoin margin trading is currently limited to USDT/USD, the exchange is planning to introduce margin trading for some other stablecoin pairings once sufficient liquidity is reached.

Earlier in December, Bitfinex and its spin-off Ethfinex added support for four new major USD-backed stablecoins, including USDC, True USD (TUSD), Paxos (PAX) and the Gemini dollar (GUSD). The four coins joined the already supported Ethereum-backed coin DAI and the industry stalwart, USDT, all to be traded against the U.S. dollar.

In late November, Bitfinex became the subject of probe by the United States Department of Justice (DoJ) in connection with alleged cryptocurrency market manipulation. The agency focused its investigation on whether or not USDT was used to artificially inflate Bitcoin (BTC) prices during last year’s meteoric rise.

The DoJ was reportedly looking into how Tether issues its new tokens and why the majority of USDT enters the market through Bitfinex, in the context of a broader enquiry into whether “market tricks” partially inflated crypto prices in recent years.

The DoJ’s allegedly intensified probe into activity on Bitfinex adds to prior investigations into possible misconduct. Both Bitfinex and Tether received subpoenas from U.S. regulators for undisclosed reasons back in December 2017, which purportedly relates to insistent doubt over Tether’s claims that USDT is backed one-to-one by the U.S. dollar.

Tags
Altcoin
Cryptocurrency Exchange
Cryptocurrencies
Stablecoin
Tether
Bitfinex
Related Posts
NYAG Accusations ‘Filled With Inaccuracies,’ Says Bitfinex Letter to Users
Cryptocurrency exchange Bitfinex stated that the recent allegations by the New York Attorney General (NYAG) about the exchange’s insolvency are “filled with inaccuracies and false assertions.” The exchange made the claim in a letter seen by Cointelegraph, emailed to Bitfinex users today, April 27. The letter was signed by the exchange’s CEO, Jean Louis van der Velde. The letter specifies that the materials brought against the exchange do not constitute a civil or criminal complaint and declares: “In particular, we want to assure you that the allegation that we have ‘lost’ $850 million is categorically false.” The exchange further explains …
Altcoin / April 27, 2019
Two Bitfinex Shareholders Say They’re Unconcerned by Insolvency Allegations
Two shareholders of major cryptocurrency exchange Bitfinex said that they are not distressed by the allegations made about the exchange’s insolvency by the New York Attorney General. The news was reported by cryptocurrency news outlet Coindesk on April 26. In January last year, Zhao Dong, a shareholder of the exchange, claimed on microblogging platform Weibo that the balance of Bitfinex and tether (USDT) reserves was over $3 billion, over the current USDT circulating supply. The balances were reportedly shown to Dong by Giancarlo Devasini, chief financial officer of Tether and Bitfinex. Dong concluded at the time: “This debunks all rumors …
Altcoin / April 27, 2019
Bitfinex Allegedly Covers $850 Million Loss With Tether Funds
The New York Attorney General’s office has alleged that crypto exchange Bitfinex lost $850 million and subsequently used funds from affiliated stablecoin operator Tether to secretly cover the shortfall, according to an announcement published on April 25. Attorney General Letitia James revealed that her office obtained a court filing alleging that iFinex Inc. — the operator of Bitfinex — Tether Limited, and their associated entities were in violation of New York law in connection with activities that may have defrauded New York-based crypto investors. James stated: “Our investigation has determined that the operators of the ‘Bitfinex’ trading platform, who also …
United States / April 25, 2019
Tether Re-Opens Direct Redemption of Fiat, While Bitfinex Adds Tether-Fiat Trading Pairs
Popular stablecoin Tether has announced 1:1 redemptions of USDT to fiat, while affiliated crypto exchange Bitfinex added two new Tether-fiat trading pairs, according to announcements from both firms Tuesday, Nov. 27. Tether announced the direct redemption of Tether to fiat along with a major redesign of its platform for the verification of new customers. According to the official announcement, the update allows users to redeem their tokens on the Tether.to platform at a USDT to fiat ratio of 1:1. All Tether deposits and withdrawals are zero-fee, while fiat transfers are are subject to commissions. Tether customers will be limited to …
Altcoin / Nov. 27, 2018
Fiat-Backed Stablecoins ⁠— Attempt to Take the Best of Both Worlds
Stablecoins attempt to be fiat currencies among cryptos. They can be a medium of exchange, a means of storing value and a unit of account. Unlike other digital coins, stablecoins are tied to some kind of stable asset — such as the United States dollar, euro or even gold. Linking to such assets confirms the coin’s stability and mitigating the volatility of cryptocurrencies. Related: Stablecoins Explained With this type of a token, an equal amount of fiat currency should be stored by the issuing company to back the value of the token. The owner of this token should be able …
Bitcoin / Oct. 6, 2019