‘Block Trading’ Facility for MATIC, SOL, and XRP Options Revealed by Paradigm

  • A block trading facility for linear options linked to MATIC, SOL, and XRP was introduced by cryptocurrency OTC liquidity network Paradigm on Monday. Trades that Paradigm facilitates will be sent to Deribit for clearing and execution.
  • OTC Liquidity Network Block trading for linear altcoin options is introduced by Paradigm on the centralized cryptocurrency exchange Deribit.
  • MATIC call options with an expiration date of May 31 were traded in the first deal between QCP Capital and Galaxy Digital.

Over-the-counter cryptocurrency liquidity network On Monday, Paradigm announced the launch of a block trading facility for options linked to well-known alternative cryptocurrencies (altcoins), such as MATIC, SOL, and XRP, on the renowned derivatives exchange Deribit.

According to Paradigm on X, clients can now perform block trades in Polygon (MATIC), Solana (SOL), and Ripple (XRP). The linear options will provide rewards that are closely correlated with 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 guarantee a limited impact on the going market price and minimize slippage, or the fees related to processing transactions.

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.

Already, some have taken notice of Paradigm’s new offering. The first deal between Singapore-based QCP Capital and Galaxy Digital, comprising 500,000 units of MATIC call spreads, was successfully completed, the platform stated 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.

We are excited to see Paradigm add linear altcoin options to its block trading services, beginning with our platform’s first transaction in MATIC options. According to Luuk Strijers, CEO of Deribit, “this expansion not only broadens our mutual offering but also lays the groundwork for upcoming inaugural blocks in SOL and XRP.”

Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.

Author: Puskar Pande

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