B2C2, an Over-the-counter (OTC) trading platform, recently created its first product for gold trading that uses Bitcoin to make settlement and pricing.
On Oct. 10, Max Boonen, the company’s CEO, told The Block —one of the common industry news outlets — that the increasing large-volume traders’ demand is what necessitated such as move.
According to him, an ounce of gold that is priced in bitcoin is the asset that clients use to trade – in which case, the minimum possible trade quantity is one ounce (approx. $1,507)
Bitcoin-based gold derivative market’s desire was also pointed out by Boonen:
“The clients we are seeing demand from are those who have their own user base of traders and macro hedge funds.”
This year, even as cryptocurrencies like Bitcoin showed increasing strength, gold has in the commodity market seen a resurgence. In that perspective, one of the gold proponent Peter Schiff claimed that the precious metal would eventually at after some time outperform Bitcoin.
Bakk continued with the trend of using Bitcoin as the settlement asset as it applied to B2C2’s product last month after it launched physical Bitcoin futures.
A former managing director of B2C2 joined Kraken — one of a major cryptocurrency exchange — in July, to foresee its new Bitcoin futures operation.