B2C2, a leading cryptocurrency over-the-counter (OTC) liquidity provider to financial institutions, has announced the launch of its gold derivatives product which it says is priced and settled in bitcoin. The firm claims the first-of-its-kind product will enable institutional investors to synthetically trade gold on its Financial Conduct Authority (FCA) approved OTC desk, according to reports on October 10, 2019.
B2C2 Introduces Gold-Bitcoin Derivative
In a bid to make it possible for its institutional clients to easily trade gold on its regulated OTC desk without having to hold the underlying physical gold, B2C2 has launched a gold-bitcoin derivative product.
Per sources close to the matter, the new B2C2 gold-bitcoin derivative is priced and settled in bitcoin (BTC), enabling institutional investors to trade gold synthetically on the platform without actually buying or selling the physical gold.
Importantly, the B2C2 team has revealed that bitcoin is not the only supported cryptocurrency in its new derivative product, as clients can decide to settle their trades in other tokens including PAX Gold (PAXG), a gold-backed altcoin launched by Paxos earlier in October 2019.
Massive Demand from Clients
At a time when the price of gold has continued to rise exponentially due to a number of macroeconomic factors in its favor which includes the U.S.-China trade war, central bank rate cuts, and a host of others, B2C2 says its decision to launch the new gold derivatives product has been motivated by massive demands for such an investment vehicle from its clients.
Commenting on the launch of the bitcoin-gold derivative, Max Boonen, founder, and CEO of B2C2 stated categorically that he strongly believes that the current economic conditions will continue to fuel demand for deflationary assets like gold and bitcoin.
“Uncertainty over economic growth and inflation is forcing central banks to rethink monetary policy and financial institutions to reassess the likely path of interest rates. There are conflicting narratives concerning what’s fueling market activity and we expect demand to only grow for ways to gain and manage exposure to deflationary assets like gold and bitcoin.”
In related news, earlier in January 2019, BTCManager informed that B2C2 had launched its streaming pricing system for point-and-click trade execution for OTC bitcoin traders.