OTC Trading Firm B2C2 Launches First Gold-Bitcoin Derivative Product

The UK-based leading cryptocurrency market maker and over-the-counter (OTC) trading company, B2C2, announced Thursday, the first of its kind product for trading gold using Bitcoin (BTC).

Per the announcement shared with the crypto news outlet, The Block, the newly launched gold derivative product will be priced and also settled in bitcoin synthetically on B2C2 OTC trading unit, “B2C2 OTC Ltd.

With the current price of gold $1,507 (at the time of writing), the idea is that “clients trade an ounce of gold (minimum trade size) priced in bitcoin, and the derivative is settled in bitcoin,” according to the founder and CEO of B2C2, Max Boonen.

According to the CEO, the gold-bitcoin derivative is coming as a result of an increase in demand from clients. He further noted:

The clients we are seeing demand from are those who have their own user base of traders and macro hedge funds.

For the basics, synthetic trading not only allows traders to take a short or long position without actual trade of the underlying asset, but the product is also open to eligible counterparties and professional clients.

Traders stand to benefit from the product as “it’s simpler to trade than the cash underlier for a variety of operational reasons, and typically represents the majority of activity in the product/asset,” the CEO added.

Meanwhile, clients can still be able to settle the trade with several cryptocurrencies, with B2C2 adding that the tokens will allow traders to access “the underlying metal since they correspond to ownership of physical gold in vaults.”

While the development possibly compliments both assets, Coinfomania recently reported the ongoing battle between gold and bitcoin enthusiasts who argue that their asset class is more feasible as a store of value (SoV). Crypto asset management company, Grayscale, even took that debate a step further by launching a global campaign that urged all investors to ditch gold and buy Bitcoin (BTC) instead.



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