It’s no secret that the demand coming from institutional investors has increased tremendously over the last year and some businesses are quick to catch the “crypto” wave and benefit from the trending market.
Two such businesses are none other but Deribit and Paradigm. Deribit is a cryptocurrency exchange for options and futures on both Ethereum and Bitcoin, while Paradigm is a leader in the messaging industry for institutional traders.
The new multi-instrument trading solution will enable companies to use the chat in the Paradigm platform for direct transactions with third parties. After a transaction is agreed upon, the data for the trade will be transferred to Deribit for execution and clearing, all of which are automatic processes.In addition, as Bloomberg reported, Deribit owns an insurance fund that aims to cover the losses from bankrupt traders.
As Bloomberg reported, Deribit has set a minimum block trade at 800 Ether and at 40 Bitcoin. The amount to which these limits currently apply are approximately $150,000 and $400,000, respectively. Reportedly, ten of the “whales” in the crypto trading industry have already signed up for the new product. The founder of Paradigm has slipped the name of one of the subscribers: QCP Capital.
The entire project speaks volumes about the size and popularity of the crypto derivatives market. The hope is that it will exceed the size of the underlying one in due course.