Kraken launches 2x leverage on USDT plus 5x for BTC/USD and ETH pairs

Digital asset exchange Kraken has announced the introduction of 2x leveraged margin trading for tether-USD (USDT/USD), the pair was first introduced back on March 29th.

The announcement stated that margin trading for USDT/USD will help drive volume and liquidity and may improve price discovery. In the past. USDT traded very near $1 USD on confidence that USDT could be redeemed 1:1 for USD from the reserves held by Tether Limited (the company behind the Tether System).

However, recently the USDT price has come under sell pressure because, although Tether Limited claims to maintain full reserves, the ability to redeem USDT for USD has been temporarily suspended while they transition to a new banking partner.

Further enhancements to the margin program include an increase to 5x leverage for other trading pairs can be found below:

• Bitcoin-USD (XBT/USD): 5x
• Ether-bitcoin (ETH/XBT): 5x
• Ether-EUR (ETH/EUR): 5x
• Ether-USD (ETH/USD): 5x

USDT pairs and leverage are available:

• USDT/USD: 2x

USDT borrow limits:

• T1 = 2000 USDT
• T2 = 7500 USDT
• T3 = 20000 USDT
• T4 = 75000 USDT

Margin fees:

• Open: 0.01%
• Rollover: 0.01%