By George Ward
The newly unveiled tokenized futures by the BTCC crypto exchange will offer users entry to tokenized stock futures and other investment tools. The new move enables crypto traders to purchase stocks and commodities with the USDT stablecoin.
Enhancing Crypto, Stocks, And Commodity Transactions
BTCC, a regulated Bitcoin mining and trading firm, recently revealed that it had integrated some support for its tokenized futures product. The product allows holders to buy and sell stocks and commodities with USDT.
Furthermore, the financial tool was designed by BTCC to be time efficient for users instead of opening accounts on Forex platforms to access multiple financial trading instruments like stocks and commodities.
In addition, the tokenized product offers support to different financial tools, including stocks from some of the world’s leading tech firms like Silicon Valley, Microsoft, Tesla, and Netflix. To further provide users access to other financial investment tools in one place, BTCC also supports about 150x leverage to suit the trading habits of users on its platform.
Holders can choose to keep their tokenized futures positions for longer duration as they want, with the funding rates going for as low as 0.01%. With over one million registered users and numerous institutional traders, BTCC has guaranteed liquidity for its supported assets.
Users can easily purchase the financial instrument of their choice at the same price without worrying about slippages. However, the BTCC team is working toward developing several perpetual futures products to complement the existing financial instruments on its platform.
BTCC Futures Vs. Crypto-Based Futures
The BTCC futures are comparable to crypto-based futures, but their operations are quite different in many ways. The trading duration is at the core of the similarities and differences between the two.
The trading hours for tokenized futures are linked to the trading period for its underlying stocks. While crypto futures products run all around the clock, the tokenized US stocks can only be traded during the American stock market trading hours.
Traders can find the exact trading hours for the tokenized future contacts on the platform’s introduction page. Moreover, each BTCC tokenized futures instrument has a market price pegged at a 1:1 ratio tied to the target financial instrument, which in most cases is higher than what is obtained on regular trading platforms.
As a result, traders are warned to only invest in products that best suit their risk appetite due to the volatile nature of the assets. BTCC is redefining the crypto futures trading landscape due to its provision of liquid and low-cost products to users involving crypto and traditional financial instruments.