The cryptocurrency exchange, regarded as one of the safest on the market, after a very long period of waiting, introduces the first stablecoin to its escrow contracts service. It is the largest and most controversial coin of its kind – Tether (USDT).
As BitMEX announced, the escrow trade so far was based exclusively on Bitcoin. As of November 10, it will be supported by Tether. This decision is meant to be a response to the growing demand for stablecoins, which, with extreme volatility occurring, are becoming an essential hedge for any portfolio. BitMEX also notes that different types of investors are present in the market. Each of them is looking for participation tailored to their needs. Hence, a new type of product has appeared in the offer, expanding trading opportunities for users. Thus, it will be possible to settle with Tether issued on the Ethereum network. Moreover, to encourage traders to take advantage of the new offer, no fees will be charged for transactions during the 30-day period.
What is BitMEX?
BitMEX is one of the more recognizable cryptocurrency exchanges in the world. It was established in 2014 and has gained popularity mainly due to the security it provides to its users. It is one of the few exchanges that has not experienced any successful hacking attacks. In addition, BitMEX is committed to going green and being transparent. In early November, it was announced that the platform had become carbon neutral. 16 assets can be traded on the exchange. Among them are Bitcoin (XBT), Cardano (ADA), Avalanche (AVAX), Axie Infinity (AXS), Bitcoin Cash (BCH), Binance Coin (BNB), Dogecoin (DOGE), Polakdot (DOT), EOS, Ethereum (ETH), (Chainlink (LINK), Litecoin (LTC), Terra (LUNA), Solana (SOL), Tron (TRX), XRP. The maximum leverage available for Bitcoin is 100x.
What does this mean for Tether?
Alexander Höptner, CEO of BitMEX noted in a statement that the introduction of Tether has nothing to do with stablecoin itself. Nevertheless, one gets the impression that this is a sort of credibility statement for the controversial coin. Let’s remember that the domain of BitMEX is transparency and security of the users gathered around it.
Tether as we know does not enjoy the best fame. It is alleged that it is not fully backed by the dollar, which has also been shown more than once in the reports of its issuer. It is largely backed by other types of assets such as stocks, debt securities, bonds, etc. In the face of unclear audits, additional security confirmations become necessary here.