Japanese Crypto Exchange Liquid to Offer Bitcoin Perpetual Contracts

The famous Japanese cryptocurrency exchange Liquid has announced on Monday that its platform will support Bitcoin (BTC) perpetual contracts offering 100x leverage to traders.

A lot like futures but different from the traditional contracts, perpetual contracts don’t expire at a certain date. This is how Liquid explained the newly offered perpetual contracts product:

“A perpetual contract has no expiry date and has no interest fees. Instead, a funding swap occurs between all open perpetual long and short contracts on Liquid. When trading perpetual contracts on Liquid you are trading contracts based on the price of BTC. Perpetual BTC contracts are represented by the P-BTC ticker on Liquid.”

The New Investment Instruments Still in Beta Phase

The date for the public launch if the new investment instruments hasn’t been given yet, as the project is still in the closed beta stage. For now, Liquid is inviting traders to perform tests on its platform and talks about a promotional offer of free services for one month. The company has been launched back in 2014. It’s a subsidiary of Quoine, the Japanese fintech behemoth. Its platform grants users access to crypto exchanges from all over the world. Besides, it’s valuated at more than $1 billion.

Liquid Will Be a Direct Competitor of Huobi and Binance

After the new instruments are going to be launched, Liquid will compete directly with giants like Huobi and Binance. Back in 2019, FTX backed by Binance launched a similar instrument that tracks 8 of the most popular crypto projects in China.

The financial regulator in Japan is thinking of putting a 2x leverage cap that depends on the crypto margin trading at exchanges, while Liquid is continuing to offer its very large client base more crypto-based services. For example, last year it redefined and improved trading services by introducing an isolated margin trading. More than this, its platform held a public sale for the Gram token created by Telegram, only to recently cancel it.

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Author: Oana Ularu

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