Paradigm, a prominent over-the-counter (OTC) liquidity network in the crypto industry, unveiled a new block trading feature on Deribit, a leading derivatives exchange.
Paradigm, a prominent over-the-counter (OTC) liquidity network in the crypto industry, unveiled a new block trading feature on Deribit, a leading derivatives exchange. The block trading facility is now available for options linked to three notable cryptocurrencies: MATIC, SOL, and XRP.
Paradigm stated that its clients can now execute block trades in Polygon (MATIC), Solana (SOL), and Ripple (XRP) through this new offering. The linear options will provide payouts that directly align with the price movements of the underlying assets, offering investors more flexibility in managing their positions.
Options are derivative contracts that grant the buyer the right, but not the obligation, to buy or sell the underlying asset at a predetermined price within a specified timeframe. Call options enable the purchase of the asset, while put options allow for selling.
Block trades are private, negotiated transactions involving futures, options, or combinations that surpass predefined volume thresholds. To facilitate these trades, participants typically employ platforms like Paradigm to request quotes and agree on prices. Once agreed upon, the trade is submitted to an exchange, in this case, Deribit, for execution and clearing.
Paradigm's OTC network has been a preferred choice for institutional investors seeking block trades since its establishment in 2016. It has accounted for nearly $400 billion in trading volume to date and currently represents 17% of the cumulative options activity for bitcoin and ether on Deribit, as of May.
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