Crypto exchange giant Binance is set to expand its cryptocurrency trading catalog with the launch of a European-style Bitcoin (BTC) options contract.
Announced on Dec. 28, the launch follows a successful testnet trial carried out back in November. The press statement also revealed that the new options contract will be priced and settled in Tether (USDT).
As part of the announcement, Binance identified the growing appetite for BTC options as the reason for debuting the new product. Earlier in December, Bitcoin options crossed $1 billion for the first time with total open interest almost reaching the $6 billion mark.
Commenting on the launch, Binance CEO Changpeng Zhao remarked that Bitcoin recently reaching $28,000 underscored the increasing level of investment in the crypto space, adding:
“The crypto industry’s growth is in good part attributable to a combination of factors, including wider public education and institutional interest, innovation in DeFi protocols and smart contracts, and development of a robust derivatives market.”
Back in April, Binance joined the expanding cast of exchanges rolling out Bitcoin options trading with the launch of American-style BTC options contracts. The major difference between the American and European formats is that traders can only exercise the latter at the expiration of the contract.
Binance’s previous iteration of Bitcoin options was also criticized for being one-sided as users were unable to “write” options and pocket the premium. As a consequence, Binance options were generally more expensive due to the inability to conduct arbitrage.
The European BTC options announcement is the latest from Binance in a busy December. As previously reported by Cointelegraph, the exchange recently began offering Segregated Witness, or SegWit, support for Bitcoin deposits.