BitMEX is releasing an XRP-U.S. dollar quanto swap targeted at crypto’s budding derivatives market.
A quanto swap is a cross-currency interest rate swap where one counterparty pays the other a foreign interest rate. When the contract expires, the notional amount gets settled in cash at a pre-defined exchange rate. These kind of swaps can be beneficial for speculators in search of liquidity and where they can post margin in their preferred currency.
The XRP/USD quanto product is set to go live on Feb. 5. The move coincides with the delisting of existing BitMEX UP and DOWN contracts. The last ones are expected to be settled by Jan. 31, with no new UP and DOWN contracts to be issued thereafter. The cryptocurrency exchange and derivatives trading platform said the affected contracts are XBT7D_U105 and XBT7D_D95.
BitMEX said in a release the contract details would be available on Testnet beginning Friday, with more information to follow.
“We are also working on new products and features which will be rolled out gradually in the upcoming quarters,” BitMEX said.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.