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Deribit and Paradigm Aiming at Institutionals — Block-Trading for Crypto Derivatives Launched

  •  Denis Sinyavskiy
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    The Deribit and Paradigm collaboration are paying off — the multi-instrument block trading solution for crypto derivatives launched successfully.

Deribit and Paradigm Aiming at Institutionals — Block-Trading for Crypto Derivatives Launched
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Contents

The growing demand from institutional investors made Deribit and Paradigm team up to launch multi-instrument block-trading solution for crypto derivatives. One of the leading institutional trading firms has already joined the trade, as it became known from the press release.

The innovation will allow organizations to use the Paradigm chat for direct transactions with counterparties at their discretion. After agreeing on a transaction, trade data will be submitted for the Deribit execution and clearing automatiсly.

What is the benefit?

This function is the first of its kind, since previously institutional traders had to agree on large trades through messengers, and then manually coordinate execution in the Deribit’s order book. The method was high-risk, especially if we take into account spreads and combined trades. About the much-needed innovation, XBTO Group’s CEO Philippe Bekhazi, said next:

For the first time, institutions that trade crypto derivatives in large volumes can negotiate privately on the Paradigm platform, after which the trade will be automatically executed, margined and cleared at Deribit and displayed on the public tape as a block trade, eliminating any execution risk associated with the order book. When excellent companies operating in a similar space work together by leveraging relationships and sharing ideas, everyone wins – including, most importantly, the end-user

Check your counterparty

Special attention is also paid to the set of counterparty management tools that the Paradigm offers. It includes the catalogue of potential counterparties and the ability to “approve” specific counterparties before the start of trading relationships. The tool will alows to check all the necessary data, including the KYC, in order to find out whether the counterparty meets the company's policies and requirements.

Companies offer two types of block trading for crypto derivatives: through the Paradigm system and directly through the Deribit’s API. Traders will have access to block transactions with futures and options for Bitcoin (BTC) or Ethereum (ETH), including spreads and combinations of these cryptocurrencies. 

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About the author

Starting with a simple interest in cryptocurrency, over the past two years, Denis has worked in a cryptocurrency fund and become an author with an analytical bias. His engineering degree helps with the analysis of the technical part of the cryptocurrency market. As a fan of cryptocurrency, Denis believes that the blockchain technology is the future.

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Ex-Congressman Says Fed Should Not Play With Own Cryptocurrency

  •  Denis Sinyavskiy
    📰 News

    Former US Congressman Ron Paul shares his thoughts on the possible creation of Fed’s own cryptocurrency

Ex-Congressman Says Fed Should Not Play With Own Cryptocurrency
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Former US Congressman Ron Paul spoke on Fox Business and said that the Fed should not think about creating its own cryptocurrency.

Fed’s Crypto: To Be or Not To Be?

Rumors have been circulating for the past few months about the Fed possibly creating own cryptocurrency. It is expected that a digital coin would become a competitor to its counterparts on the market, and may even replace fiat money. President Patrick Harker, President of the Federal Reserve Bank of Philadelphia, commented on such rumors at a recent conference:

“It is inevitable. I think it is better for us to start getting our hands around it.”

However, there has not been no official follow-up by the Fed towards a crypto exchange. While proponents of this idea believe such innovation is necessary, it is expected that the exchange could stop the current delays involving US bank transfers.

What do the opponents think about the Fed's own cryptocurrency?

The idea of ​​creating the Fed's cryptocurrency has its opponents. This includes Ron Paul, who believes that the Fed is in a better position to stay away from digital coins and allow the private blockchain sector and payment platforms to resolve this discussion in real-time. What the Fed plans to do next is unclear, but the central bank may still enter the game.

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About the author

Starting with a simple interest in cryptocurrency, over the past two years, Denis has worked in a cryptocurrency fund and become an author with an analytical bias. His engineering degree helps with the analysis of the technical part of the cryptocurrency market. As a fan of cryptocurrency, Denis believes that the blockchain technology is the future.

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