Binance Future’s users can now use BTC as cross collateral. Binance Futures added support for bitcoin in cross collateral contracts today and is now one of the first to support multiple digital assets as collateral.
The exchange has added Binance USD (BUSD), and USDT before.
“We’ve tripled down on #BinanceFutures collateral! Trade with: $USDT, $BUSD or $BTC. Some interesting hedge/exposure combinations can be made”, tweeted Aaron Gong, VP of Binance Futures.
Binance’s users can now borrow USDT in the cross collateral platform using BUSD and BTC in their spot wallet. The currency that they use as cross collateral will be deducted from the wallet with zero interest. Borrowed funds in futures trading platform can be used for trading 24 digital assets inside the application. Once the user repays the loan in the futures wallet, the cross collateral will be paid back.
“BTC is one of the most recognized digital assets among crypto users both as an investment instrument and as a trading tool. By adding BTC as collateral under the Cross Collateral feature, Binance Futures allows our users to capture the opportunity of profiting from the upward and downward price movements without selling BTC at a compromised price,” said Aaron Gong. “We will continue to enhance the Cross Collateral feature and support more coins in the future.”
Binance published an instruction for borrowing and repaying funds in the futures platform today. It is simple and there are just some limitations to the amount of the loans. The minimum USDT loan available is ten, and the maximum is 500,000.
Binance launched its futures trading platform six months ago. Because of the vast user base of the exchange has among ecosystem actors, the new platform experienced significant traction from users very soon. It recorded a daily trading volume of $5 billion some days ago.
Binance Futures provides 125x max leverage for BTC and BNB and 75x leverage for other altcoins. It places the platform on top of major future trading services around the world. Binance always warns users about the risks of futures trading and talks about the volatile nature of the crypto market in all its announcements.
The post Binance added BTC support in futures trading’s cross collateral appeared first on Crypto Economy.