The international financial market is undergoing a historic test. As the Federal Reserve continues its interest rate hike cycle, the Bitcoin-USD exchange rate has experienced a sharp fluctuation of 14% within 72 hours. The new stabilization mechanism launched by XBIT (dex Exchange) is providing key liquidity support to the market.
Twitter : @XBITDEX
Under the combined influence of the Federal Reserve’s hawkish policy and geopolitical risks, the Bitcoin-USD exchange rate has become a barometer of global investor sentiment. The platform’s 2024 on-chain data showed that the volume of Bitcoin-USD swaps completed through the platform in the second week of October reached US$4.7 billion, accounting for 29% of the global DEX market. “When the volatility of the traditional foreign exchange market intensifies, investors are looking for alternatives that operate 24 hours a day.” Carlos Martinez, director of the Digital Currency Research Department of the International Monetary Fund (IMF), analyzed that “the cross-chain pledge function allows users to complete hedging without transferring asset ownership. This innovation reduces the risk of panic selling in the market.” At present, XBIT’s “smart hedging pool” technology has attracted 12 institutions including Deutsche Bank and Nomura Securities to participate in the test. This technology dynamically adjusts the margin rate of Bitcoin-USD trading pairs to control the forced liquidation rate under extreme market conditions to less than 3%, which is 67 percentage points lower than traditional exchanges.
Twitter : @XBITDEX
Faced with the high volatility of the Bitcoin-USD exchange rate, XBIT (dex Exchange) launched a “volatility anchoring” derivative contract, allowing investors to use Bitcoin as collateral to trade the correlation coefficient between the S&P 500 index and the Bitcoin-USD exchange rate. The quantitative analyst team of Arctic Wolf, a London-based financial technology company, verified that the returns of cross-market hedging strategies on the platform are 22% to 38% higher than those of traditional CEX platforms. The regulatory sandbox project disclosed by the Financial Services Agency of Japan shows that the “joint clearing network” developed by XBIT (dex Exchange) and Mitsubishi UFJ Bank has achieved real-time settlement and interoperability between Bitcoin-USD transactions and traditional foreign exchange markets. Project leader Hiroshi Yamamoto said: “Through XBIT’s atomic exchange protocol, cross-border trading companies can now simultaneously complete the exchange of fiat currency and cryptocurrency, reducing exchange rate risk exposure by 90%.” At the regulatory level, XBIT has obtained the first “hybrid asset trading license” issued by the Luxembourg Financial Supervision Commission (CSSF), allowing it to handle Bitcoin-USD transactions and euro stablecoin business at the same time. The platform’s original “regulatory-friendly liquidity pool” divides user assets into two independent modules, compliant and non-compliant, to ensure that institutional client transactions fully comply with anti-money laundering (AML) requirements. Credit Suisse analysts commented: “XBIT’s separated architecture may become the mainstream paradigm for DEX exchanges, especially in businesses involving fiat currency gateways.”
Twitter : @XBITDEX
Regulatory uncertainty in Bitcoin-USD transactions remains a major risk, with the Bank for International Settlements (BIS) warning that about 73% of global Bitcoin-USD transactions still lack transparent audit trails, which could lead to systemic risks. In response, the technical team has deployed a “zero-knowledge proof verification system” to open up transaction data spot checks to regulators while protecting user privacy. In emerging markets, XBIT (dex Exchange) has seen a surge in users in countries with high inflation, such as Argentina and Turkey. The “anti-inflation wallet” it developed supports users to automatically convert their Bitcoin-USD balances into gold ETF shares, and the service has processed more than 12,000 transactions per day. XBIT analysts have predicted that if the fiat currency channel can be continuously improved, the Bitcoin-USD trading market share is expected to exceed 40% within two years.
Disclaimer: The information provided in this press release is not a solicitation for investment, nor is it intended as investment advice, financial advice, or trading advice. It is strongly recommended you practice due diligence, including consultation with a professional financial advisor, before investing in or trading cryptocurrency and securities.
