Delta Exchange, a fast-growing cryptocurrency futures platform, has announced launching Tether Gold (XAUT) perpetual contracts.
The exchange would provide traders with a fixed leverage of 20x for the newly-listed contract.
In January, Tether and TG Commodities have introduced a physical gold-backed cryptocurrency after “growing demand for a digital asset that provides exposure to the world’s most enduring asset and a geopolitical need for an alternative financial system.”
Pankaj Balani, CEO of Delta Exchange, said:
“The introduction of Tether Gold (XAUt), the digital token, backed by physical gold onto the Delta Exchange platform is significant in opening a new sector of trading that will allow traders access to physical gold. These futures contracts will provide a means of hedging to aid in the offsetting of risk.”
Benefits of XAUT
XAUT holders can exercise possession of gold and avoid the negative impacts of actual gold, such as high storage costs and restricted accessibility.
The cryptocurrency is available as an ERC-20 token on the Ethereum blockchain. In addition, each XAUT represents one fine troy ounce of gold.
The perpetual contracts were created when bullion prices moved up globally, while equities and cryptocurrencies were seeing consistent downward trends due to the outbreak of COVID-19.
“We have received good demand for trading Futures on gold-backed crypto-assets for some time now and as the Gold prices spike, in the backdrop of Coronavirus scare and global markets sell-off, we expect to see good trading activity in XAUt Futures.”
Cryptolydian earlier reported that Bitfinex has repaid another part of the loan facility to Tether, just hours after a major denial of service attack (DDoS) occurred.
Bitfinex has repaid $100 million in outstanding loan facility to major stablecoin operator Tether (USDT).
The exchange has processed the transaction in fiat via wire transfer wired to Tether’s bank account.