The Singapore-based crypto trading platform and derivatives exchange Bitget has partnered with stablecoin issuer Circle, and will be the first exchange to accept USD Coin (USDC) as collateral for crypto trading.
According to Crowdfund Insider, the breakthrough is the result of a strategic collaboration between the Singaporean crypto derivatives trading firm and USDC stablecoin issuer Circle.
As part of the cooperation, Bitget will allow USDC margin for Quanto Swap Contract trading, which the exchange claims would increase market liquidity.
USDC has been added to the list of approved margins for Quanto Swap contracts, joining Bitcoin (BTC), Ether (ETH), EOS, and XRP.
In April, Bitget introduced Quanto Swap contracts, which allow traders to use one or more cryptocurrencies as margins for cross-currency deals.
Quanto Swaps are supposed to address problems with inverse contracts and Tether (USDT)-paired contracts, particularly in terms of capital use and expenses.
Traders can transfer markets without needing to convert cryptocurrencies because Quanto Swaps are cross-currency swaps with multiple margins.
Bitget’s trading channels would purportedly be scaled as a result of the partnership with Circle. USDC will be accessible for purchase on the exchange via a variety of payment methods, including debit and credit cards.
Bitget is the eighth-largest crypto derivatives exchange according to CoinMarketCap, with a 24-hour volume of about $4 billion at the time of writing.
The platform began working on expanding its reach to the United States in March 2020, after obtaining a license from the US Financial Crimes Enforcement Network. Its 24-hour volume was around $1 billion at the time.
The platform was also among those granted a temporary exemption from Singapore’s crypto exchange licensing process.
Indeed, as governments strive for more restrictive laws, financial regulators around the world are expanding their scrutiny of exchanges.