HTX Introduces Multi-Asset Collateral Mode for Futures Trading

Cryptocurrency exchange HTX has announced a new feature called Multi-Asset Collateral Mode, allowing users to trade USDT-M futures using either Bitcoin (BTC) or Ethereum (ETH) as collateral—without the need for converting assets into USDT. The update signals a notable shift in how exchanges are approaching user experience and capital efficiency in futures markets.

The feature eliminates the additional step of converting BTC or ETH into USDT, streamlining the trading process for futures traders who hold their assets in these popular cryptocurrencies. According to the announcement, the system is already live, with early bird incentives for users who activate and trade in this mode.

How the Multi-Asset Collateral System Works

In traditional USDT-margined futures trading, users must convert their collateral into USDT before initiating a position. HTX’s Multi-Asset Collateral Mode removes this requirement. Traders can now deposit BTC or ETH directly and use them to collateralize their futures positions.

This system simplifies trading workflows and may reduce friction for high-frequency traders and institutions. Since users can trade directly from their BTC or ETH balances, there’s less need to hold large amounts of USDT or shift between tokens frequently—an action that can lead to slippage and additional fees.

HTX has also stated that this new system is powered by an upgraded in-memory trading engine, offering faster execution and higher throughput, particularly during high-volatility periods.

Advantages and Potential Use Cases

The main advantages of this mode are:

• No Asset Conversion: Instantly opens futures positions without having to convert BTC/ETH into USDT.
  
• Faster Trade Execution: HTX claims enhanced speed via a revamped backend infrastructure, supporting up to 400,000 orders per second.
  
• API Compatibility: The platform promises improved API response times and more refined diagnostics, which could appeal to algorithmic traders and institutions engaged in automated strategies.
  

These improvements align with broader industry trends aiming to reduce friction in leveraged trading environments and optimize the capital structure for advanced users.

Broader Implications for DeFi and CeFi

HTX’s update could signal a gradual merging of flexibility seen in decentralized finance (DeFi) protocols with the structure and compliance of centralized exchanges (CeFi). DeFi platforms like GMX and dYdX have long supported multi-asset collateral in perpetual markets, but such features have only recently started appearing in centralized trading venues.

By allowing collateral flexibility, exchanges can attract users who wish to maintain long-term holdings in assets like BTC or ETH, while still participating in futures markets without needing to offload or swap their positions.

Considerations and Risks

While convenient, using volatile assets like BTC or ETH as margin introduces additional risks. A drop in the value of the collateral asset could trigger margin calls or forced liquidations faster than with stablecoin collateral. Traders should be aware of this volatility and ensure they maintain appropriate risk management strategies.

As with any new trading feature, real-world performance, user feedback, and risk dynamics will be critical in determining its effectiveness over time.