Binance Allows Futures Contracts With Bitcoin As Cross Collateral Author: Ali Raza Last Updated: 13 June 2020 Binance Futures, the Futures trading arm of the Binance exchange, has now added an option to use Bitcoin (BTC) as a form of cross collateral. What this means is traders are now capable of leveraging the BTC they hold within their exchange wallets, in order to borrow Tether (USDT) within the Futures platform. New Age Of Collateral The leading crypto exchange by trade volume, Binance, has had its Futures platform announced earlier today that it was giving Bitcoin a cross collateral function. This function was given alongside Tether’s similar role. Through doing so, Binance Futures, as a platform, will adapt in order to cater to a broader market. In addition, the platform will now join its biggest competitors, for example, BitMEX, which offers BTC as cross collateral already. The option to use cross collateral will appear within the wallet interface of Binance Futures. After users have concluded how much USDT they would like to borrow, they are capable of beginning the “start borrowing” process. Through this, users will be capable of receiving Tether within their futures wallet, will a collateral amount of Bitcoin will automatically be deducted from the spot wallet. Risk Of Interest After traders are satisfied with their position, they’re capable of repaying the loan from the same “collateral” menu within their Futures wallet. According to the appropriate Binance guidelines, the maximum amount of USDT you can borrow per account is 1,000,000, with the minimum standing at 1 USDT. Last month started the trend for Binance, as it had announced its first-ever cross collateral asset during that time: The Binance USD (BUSD). The BUSD cross collateral operates much in the same way as the BTC cross collateral. At the time of the announcement of BUSD cross collateral, Binance was quick to state that there would be a 0% interest rate in borrowing USDT with it. However, the exchange has yet to clarify if the interest rate with the BTC/USDT borrowing will be the same. Constant State Of Expansion In other news, Binance’s peer-to-peer arm has continued its expansion as well. In particular, it had expanded its P2P trading offering to the Russian Ruble (RUB) in February this year, with the Vietnamese Dong (VND) having been added in January. During this Tuesday, the company had added both the Euro (EUR) and the Malaysian Ringgit (MYR), as well as the Ukrainian Hryvnia (UAH) to its offerings. Users are capable of using these three currencies to buy and sell Ethereum (ETH), BTC, BUSD, USDT, and BNB.