Binance Introduces USDT-Margined Quarterly Futures

With the launch of two USDT-Margined Quarterly Futures products for Bitcoin and Ethereum, users have more choices with a fuller suite of cryptocurrency derivatives products.

Binance, the global blockchain company behind the world’s largest digital asset exchange, today introduces USDT-margined quarterly futures for Bitcoin and Ethereum. The new products add further diversification to Binance’s wide offerings to meet the rising demand for Bitcoin and other cryptocurrency products. 

Users on Binance Futures can now select futures contracts according to whether the contracts are settled in native cryptocurrencies (coin-margined) or stablecoins (USDT- or BUSD-margined), and also whether the contracts are open-ended perpetual or have a delivery date:

• COIN-margined Futures (displayed as “COIN-Ⓜ” on the web and mobile app)

  • Perpetual Futures

  • Quarterly Futures 

• USD stablecoin-margined Futures (displayed as “USDⓈ-M” on the web and mobile app)

  • Perpetual Futures

  • Quarterly Futures (available from 3 February 2021)

The first pairs of USDT-margined Quarterly Futures are:

• BTCUSDT (Quarterly 0326), with expiration and delivery on March 26th, 2021

• ETHUSDT (Quarterly 0326), with expiration and delivery on March 26th, 2021

Binance Futures first launched in October 2019 with only one product line, USDT-margined Bitcoin perpetual futures. Following Binance’s success of being the largest cryptocurrency spot exchange by traded volume, users were also drawn to the Binance Futures’ fast and stable matching engine. 

Today, Binance’s USDT-margined BTC perpetual futures lead the industry, with $627.5 bn in traded volume in January 2021, according to third party data from Bybt.

With crypto adoption expected to accelerate, the addition of USDT-margined quarterly futures will give users more choice in their portfolio management and enable more advanced users to employ hedging and trading strategies according to their preferences.

As USDT-margined contracts are linear futures products quoted and settled in USD stablecoins, it allows users to easily calculate their returns in fiat currencies. Usage of stablecoins (USDT or BUSD) as collateral across these futures contracts (i.e., against BTC, ETH, etc.), eliminates the need to convert to other cryptocurrencies and avoids conversion fees. 

Conversely, coin-margined futures can be attractive to users such as miners and long-term investors since settlement and returns are in cryptocurrencies. When crypto prices rise, the value of crypto assets held as collateral increase correspondingly and offer stronger hedging against fiat inflation.

(More information on the comparisons between coin-margined and USDT-margined futures are available here.)

With the introduction of USDT-margined quarterly futures for BTC and ETH, Binance now offers 166 derivatives products:

• 89 USDT-margined futures, 1 BUSD-margined futures

• 34 Coin-margined futures

• 36 Binance Leveraged Tokens

• 6 Binance Options