Key Takeaways
- • Deribit claims it is becoming the first crypto futures and options exchange to offer large-volume block trades in bitcoin and ether derivatives, according to a BNN Bloomberg report.
- • Block trades will have minimums of 40 bitcoin and 800 ether for options contracts linked to those cryptocurrencies, per CEO John Jansen.
- • The service is delivered through a partnership with institutional messaging service Paradigm, which lets OTC traders automate price negotiation and settlement.
- • Ten top crypto trading firms have already signed up, with Paradigm founder Anand Gomes naming QCP Capital as a participant.
- • Trades are settled and cleared at Deribit, which is not regulated in the Netherlands because local rules define derivatives as cash-settled contracts.
Summary
Amsterdam-based crypto derivatives exchange Deribit is launching bulk derivatives trading, which it says makes it the first crypto futures and options exchange to offer large-volume trades of bitcoin and ether derivatives. The move was reported by BNN Bloomberg on Thursday, and it comes through a partnership with institutional messaging service Paradigm.
According to BNN Bloomberg, Deribit CEO John Jansen said the new service will offer block trades with a minimum size of 40 bitcoin and 800 ether for options contracts linked to those cryptocurrencies. Ten leading crypto trading firms have already signed up to use the service. Paradigm founder Anand Gomes named QCP Capital as one of the participating firms in the report.
Per Paradigm's website, the platform gives over-the-counter traders tools to automate price negotiation and settlement. Parties use the messaging service to set up options trades, which are then settled and cleared at Deribit. Traders have commonly carried out such negotiations over Telegram.
BNN Bloomberg reported that Deribit is not regulated in the Netherlands, because local regulation defines derivatives as cash-settled contracts. The exchange does have an insurance fund as a safety net in the event traders default on payments due to issues such as bankruptcy.
The launch follows earlier institutional activity on the platform. In March, Galaxy Capital-backed institutional trading firm Caspian launched crypto derivatives trading through an integration with Deribit's platform.
According to BNN Bloomberg, Deribit CEO John Jansen said the new service will offer block trades with a minimum size of 40 bitcoin and 800 ether for options contracts linked to those cryptocurrencies. Ten leading crypto trading firms have already signed up to use the service. Paradigm founder Anand Gomes named QCP Capital as one of the participating firms in the report.
Per Paradigm's website, the platform gives over-the-counter traders tools to automate price negotiation and settlement. Parties use the messaging service to set up options trades, which are then settled and cleared at Deribit. Traders have commonly carried out such negotiations over Telegram.
BNN Bloomberg reported that Deribit is not regulated in the Netherlands, because local regulation defines derivatives as cash-settled contracts. The exchange does have an insurance fund as a safety net in the event traders default on payments due to issues such as bankruptcy.
The launch follows earlier institutional activity on the platform. In March, Galaxy Capital-backed institutional trading firm Caspian launched crypto derivatives trading through an integration with Deribit's platform.
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