Over-the-counter (OTC) communication platform Paradigm on Thursday announced that it has integrated crypto derivative trading services of Deribit on its platform.
With this, institutional clients of Paradigm can negotiate on the prices and can directly execute trades on Deribit.
Paradigm offers communication services to institutional clients and automates price negotiation and settlement workflows for OTC digital asset trades. The platform is backed by prominent venture capitals including XBTO Ventures, Vectr Fintech Partners, and Monex Group.
Though the platform has a presence all around the world, it restricted its services in the United States, Iran, Saudi Arabia, North Korea, Iraq, Cuba, Venezuela, Crimea, and Quebec province in Canada due to regulatory restrictions.
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“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,” Philippe Bekhazi, chief executive of XBTO Group said.
Streamlining the settlement process for large trades
The announcement detailed that block trading services on Deribit will be available both through the Paradigm system and directly via Deribit’s API to give traders access to block trades in Bitcoin (BTC) or Ethereum (ETH) backed futures and options, including spreads and combinations of the two products.
“When excellent companies operating in a similar space work together by leveraging relationships and sharing ideas, everyone wins – including, most importantly, the end user,” Bekhazi added.
Launched in 2016, Deribit started as a Bitcoin futures and options trading platform and, later, extended its services for Ethereum as well. It allows traders to trade perpetual, futures, and options contracts, and also offers European-style cash-settled crypto options.
Earlier this year, Deribit’s services were integrated on Caspian, an institution-focused digital asset trading and portfolio management platform.