Retail broker Axi announced the launch of fiat-settled perpetual futures on Wednesday.
The company said the new feature was set up to make trading in the crypto products more transparent and streamlined for its customers.
“Too many traders are forced to operate in opaque environments where the risks aren’t always clear,” said Stuart Cooke, Head of New Business at Axi.
“By introducing fiat-settled perps, we’re breaking away from that model. Traders get the same exposure and flexibility of crypto derivatives but within a more transparent, regulated, and secure framework.”
Most platforms offering crypto perpetuals require users to exchange their fiat currency for stablecoins, which they then trade the products in. Any profits are then settled in the same stablecoin.
Axi’s perpetuals do not force traders to do this, meaning they do not have to pay any conversion fees and have greater visibility over the P&L of their trading activity.
Perpetuals are very similar to CFDs and are almost identical structurally to exchange-traded versions of the product that have existed in the past.
They have become increasingly popular over the last couple of years among traders looking to speculate on crypto markets with high leverage.
Axi has been one of the first big FX/CFD brokers to branch out into the perpetuals trading space.
“Transparency and fairness aren’t optional extras — they’re what will define the future of trading,” Cooke noted. “Our role is to give traders the confidence that comes from knowing the rules of the game.”
