KuMEX, the KuCoin-developed Bitcoin futures platform, announced it plans to roll out perpetual Tether-margined Bitcoin contracts on March 30th, 2020.
KuCoin officially announced that Tether will become the second cryptocurrency supported on KuMEX after Bitcoin. In the near future, the firm also plans to support other major cryptocurrencies like Ether (ETH), XRP, Bitcoin Cash (BCH) and Bitcoin SV (BSV) for trading on KuMEX.
KuMEX Supports Bitcoin and Tether Only
While the new type of futures contract will be launched next week, the company said that KuMEX users are already able to deposit USDT via the web or public API starting on March 26. According to the announcement KuMEX offers cryptoderivatives trading up to 100x leverage.
A perpetual contract is by definition a special kind of a futures contract, an agreement to buy or sell a crypto asset at a specific future date at a specific price. Unlike the traditional form of futures, there is no expiry date for a perpetual contract while its trade is based on an index price underlying it. The index price includes an asset’s average price in line with major spot markets, and its relative volume of trading.
As such, the BTC / USDT spot index for KuMEX will consist of the BTC / USDT volume-weighted average price across six major cryptocurrency exchanges, including Binance, OKEx and Huobi. The volume of the trading will be adjusted quarterly, KuCoin added.
Johnny Lyu, CEO at KuCoin Global, said:
“By introducing the world’s first Lite Version of Bitcoin futures platform, supporting 10+ languages and now the launch of USDT Contracts, KuMEX is committed to building a simple, reliable and transparent futures platform. The USDT Perpetual Contracts will make it clearer and easier for new futures traders to make investment decisions using USDT, and mitigate the volatility brought by non-pegged tokens.”
Furthermore, the KuCoin team stressed that KuMEX decided to choose USDT as the first stablecoin supported on the platform because the coin is “far more stable” in terms of market capitalization, liquidity and user recognition than other coins such as Circle’s USDC or Paxos ‘PAX.