Cryptocurrency exchange Bitfinex has launched tether-settled perpetual contracts that track two European equity market indices.
Perpetual contracts on Europe 50 (EUROPE50IXF0: USTF0) and Germany 30 (GERMANY30IXF0: USTF0) will go live at 09:00 UTC on Monday, the firm said in a press release.
Each contract offers up to 100x leverage and will be settled in stablecoin tether (USDT).
A perpetual contract is similar to a traditional futures contract, but has no expiry and mimics a margin-based spot market.
The STOXX Europe 50 includes 50 stocks from 18 European countries and provides a blue-chip representation of supersector leaders in the region.
Meanwhile, the German 30 or DAX 30 is a stock index that represents 30 of the largest and most liquid German companies that trade on the Frankfurt Exchange.
“This is the first time that an exchange from the digital asset space has launched a product that bridges the gap with traditional stock markets, representing a significant milestone in the evolution of crypto as an established asset class,” said Paolo Ardoino, CTO at Bitfinex Derivatives.
Using tether – a so-called stablecoin designed to maintain a value of per token – will facilitate settlement in cross-asset class trading strategies, hedging and risk management, Ardoino added.
The perpetual contracts will be open for trading 24/7, unlike equity exchanges which are open for business for a limited number of hours, five days a week.
As such, traditional market investors may turn to Bitfinex’s perpetual swaps on data- or event-heavy weekends for price discovery ahead of Monday's opening bell.
“Over the weekend, we may reasonably expect lower volumes than on weekdays in the normal course of a business unless there are significant economic developments over the weekend, such as a central bank policy shift, etc,” Bitfinex told CoinDesk in an email.
The exchange will aim to ensure price stability by putting a +/-5% cap on the final mark price from 4:30 p.m. UTC until 8:00 a.m. UTC on the following day.