Bitfinex introduces margin trading for Tether

Bitfinex has announced that it will open margin trading for USDT/USD pair “improving [their] stablecoin offering in line with market evolution and consumer demand.” Bitfinex said that the addition of margin trading allows for, “more efficient price discovery, but in an important move for risk management, unlock the ability to hedge the exposure taken on stablecoins”.

As such, Tether is also now available for margin lending.

In late November, Tether reopened direct redemption on Tether’s website while Bitfinex added USDT/USD pair for the first time. In early December, Bitfinex added USDC, TrueUSD, Paxos, and Gemini dollar. The company said that there are plans in place to introduce margin trading for other major stablecoins “when sufficient liquidity is reached” as part of the commitment to providing a coin agnostic platform.

Is this an attempt to reduce the Tether premium on Bitfinex, currently at 3%?

Let us know your thoughts in the comments below.


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