Over-the-counter network for cryptocurrency liquidity On the well-known derivatives exchange Deribit, Paradigm announced on Monday the opening of a block trading facility for options connected to popular alternative cryptocurrencies (altcoins), like MATIC, SOL, and XRP.
In an announcement on X, Paradigm stated that “clients can now execute block trades in Polygon (MATIC), Solana (SOL), and Ripple (XRP).” The linear options will pay out in a way that “directly corresponds to changes in the underlying asset’s price.“
Derivative contracts known as options grant the buyer the right, but not the responsibility, to purchase or sell the underlying asset at a fixed price by a given date (the “expiration date”). The right to buy is provided by a call option, while the right to sell is provided by a put option.
Privately negotiated futures, options, or combination contracts that beyond specific volume thresholds are referred to as block trades. After reaching a mutually agreed upon price through the use of communication technology such as Paradigm, parties submit the trade to an exchange—in this case, Deribit—for clearance and execution.
Block trades reduce slippage, or the costs associated with transaction processing, and ensure a restricted influence on the going market price.
Institutional investors have been using Paradigm’s OTC network to execute block trades ever since it launched in 2016. As of May, the platform represents 17% of all bitcoin and ether options activity on Deribit, with approximately $400 billion in volume logged thus far.
A few people have already noticed Paradigm’s latest product. According to the platform, the first trade between Galaxy Digital and Singapore-based QCP Capital, which included 500,000 units of MATIC call spreads, was successfully finished on Monday.
MATIC call options with strikes of 80 cents and 95 cents that expire on May 31 were traded. The trade was produced on Deribit with assistance from Paradigm. The Polygon Network’s native cryptocurrency, MATIC, is used for gas charge payments and staking.
“The addition of linear altcoin options by Paradigm to its block trading services, starting with the first MATIC option transaction on our platform, excites us. The CEO of Deribit, Luuk Strijers, stated, “This expansion not only broadens our mutual offering but also sets the stage for upcoming inaugural blocks in SOL and XRP.”
