Deribit to Provide Bulk Crypto Derivatives Trading

Deribit asserts it’s going to be the first crypto futures and options exchange for offering large-volume trades of bitcoin and ether derivatives.

The move comes through collaboration with institutional messaging service Paradigm, a BNN Bloomberg report on August 22 stated.

John Jansen, CEO of Deribit, purportedly said the new service would provide block trades with a minimum of 40 bitcoin and 800 ether for options contracts connected to those cryptocurrencies.

Ten top crypto trading firms have already registered to utilize the benefit, with Paradigm founder Anand Gomes naming QCP Capital in the report.

As per its website, Paradigm provides tools enabling over-the-counter traders to automate price negotiation and settlement. Utilizing Paradigm’s messaging service, parties can set up the options trades, which are subsequently settled and cleared at Deribit. Usually, traders use Telegram to carry out such negotiations.

Deribit, which is based in Amsterdam, isn’t regulated in the Netherlands since local regulation characterizes derivatives as cash-settled contracts, BNN Bloomberg states. However, the trade has the security net of an insurance fund, should dealers default on payments because of issues like bankruptcy.

Back in March, Galaxy Capital-backed institutional trading company Caspian introduced trading in crypto derivatives via integration with Deribit’s platform.