It has been reported that the development comes courtesy of a strategic collaboration between the Singaporean crypto derivatives trading service and USDC stablecoin issuer Circle. Bitget will support USDC margins for Quanto Swap Contract trading as part of the partnership, a move the exchange says will provide more liquidity for the market.
However, USDC now joins Bitcoin (BTC), Ether (ETH), EOS, and XRP as accepted margins for Quanto Swap contracts. Bitget launched Quanto Swap contracts back in April. Quanto Swap contracts allow traders to utilize one or more cryptocurrencies as margins for cross-currency trades.
The report said that Quanto Swaps are said to solve the issues related to inverse contracts as well as Tether (USDT)-paired contracts, especially in the area of capital utilization and costs. Since Quanto Swaps are cross-currency trades with multiple margins, traders can switch markets without having to convert cryptocurrencies.
Likewise, the collaboration with Circle will also reportedly scale Bitget’s trading channels. USDC will also be available for purchase on the exchange via debit and credit card payment channels, among others. Back in March 2020, the platform began working towards expanding its reach to the United States, securing a license from the US Financial Crimes Enforcement Network. The exchange was also among a list of platforms that were granted a temporary exemption from Singapore’s crypto exchange licensing regime.
Thus, earlier in July, Sandra Lou, the CEO of Bitget, stated that crypto exchanges must prioritize regulatory compliance. Indeed, financial regulators across the globe are increasing their scrutiny of exchanges as governments push more stringent policies.