Deribit Crypto Platform Launches Block Trading Solution With Paradigm

The cryptocurrency derivatives exchange Deribit partnered with the trading platform Paradigm in order to launch a block trading solution. This solution aims at enable institutions to negotiate crypto-derivative trades using chat on paradigm. The information was published in a press release by these two companies on August 22.

Deribit and Paradigm Partner To Create Block Trading Solution
This new solution that was launched by these two companies is the first of its kind that is offered by a crypto-derivatives exchange. Moreover, the solution wants to help institutions negotiate crypto-derivative trades on Paradigm while the agreed information is directed to Deribit for execution and clearing.

At the same time, these two firms want to also eliminate the execution risk that is associated with the order book. These risk increases when institutions and traders arrange large trades using Telegram or Skype and coordinate the execution on Deribit.

According to John Jansen, the co-founder and CEO of Deribit, there are many benefits for institutions when they perform trading activities with options. Jansen has also explained that traders are also able to create a portfolio with put and call options and be able to trade them later by blocks.

On the matter, he commented:

“The ability to negotiate deals privately and execute them automatically on Deribit platform but outside of the order book is a crucial step in onboarding institutional traders. You remove the risk of front running and offer institutions the ability to trade significant amounts without moving the markets and with a counterparty of their choosing.”

The information about these new services for institutional and other traders comes at a moment in which the cryptocurrency market is trying to welcome larger investors and institutions. Firms such as the Intercontinental Exchange (ICE) released their trading platforms and would soon be able to welcome new investors to the crypto space.

In general, the whole infrastructure created in the virtual currency market has been designed and planned for smaller investors and retail traders. With the official launch of Bakkt next month, larger investors are expected to enter the space and gain exposure to the most popular cryptocurrency, Bitcoin (BTC).

There are other firms such as Fidelity Investments that are also working on new services and products for traditional investors. As the crypto market continues expanding, these companies are going to be welcoming new large and institutional players.