Dubai / June 21, 2023 / BIT Exchange, the full-featured cryptocurrency exchange designed for professional traders, has announced plans to expand crypto options trading, beginning with the availability of Cardano (ADA) options. ADA will be joined in future by additional altcoins and the first meme coin options, giving traders the ability to enhance their trading strategies and increase their exposure to many of the industry’s favorite tokens.
The expansion of BIT’s options trading market, starting with ADA, has been made possible by a collaboration between BIT and its strategic partners Darley Technologies, the pioneering liquidity provider, and DWF Labs, a market maker for digital assets and a key backer of Web3 ecosystem startups.
BIT Exchange is looking to transform crypto options trading from a niche strategy into a powerful and flourishing market for professional traders. Options is a kind of derivative contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a set price on or before its expiration date. It enables traders to manage their exposure to, and speculate on the future price of digital assets, and is widely viewed as a low-cost and low-risk way of trading digital assets.
ADA will be the first of many upcoming altcoin and meme coin options. It’s the native token of the Cardano network and the world’s seventh highest-ranked cryptocurrency, with a market cap of more than $13.2 billion. Cardano is a proof-of-stake blockchain platform that supports decentralized applications with a multi-asset ledger and smart contract capabilities. One of its chief aims is to allow innovators and visionaries to bring about positive global change and redistribute power from unaccountable structures to the margins and individuals. To that end, ADA is designed to ensure owners can participate in the operation of the network, with holders granted voting rights on any proposed changes to the underlying software.
“We are extremely proud to expand our altcoin options contracts, in collaboration with DWF Labs and Darley Technologies. This partnership signifies our shared belief in the immense growth potential of the crypto options market. BIT and our esteemed partners are fully committed to improving the accessibility of crypto options for both institutional and retail traders,” said Justin Buitendam, BIT's Global Head of Institutional Sales, in a statement.
Darley Technologies and DWF Labs are playing a vital role in expanding BIT’s options market. Darley’s cutting-edge infrastructure addresses the unique market risk management requirements and operational risks posed by the addition of any new digital asset. Through its partnership with BIT, Darley is making another significant stride towards its goal of expanding the crypto options trading market.
DWF Labs previously collaborated with BIT to introduce TON/USD options to its platform, and its innovative market making and digital asset expertise has once again proven essential in pioneering the world’s first ADA/USD options market. Looking forward, DWF Labs and BIT intend to broaden their collaboration as they prepare to launch multiple, upcoming options for altcoins and meme coins in the not too distant future, providing traders with even greater possibilities.
"We are delighted to collaborate with BIT and Darley Technologies in bringing ADA options trading to the crypto market. This partnership underscores our shared belief in the immense growth potential of the crypto options market.” said Andrei Grachev, Managing Partner of DWF Labs “Our market making expertise and innovative approach have been instrumental in pioneering the world's first ADA/USD options market. We are excited about the future and our plans to expand collaboration with BIT, launching a range of upcoming options for altcoins and meme coins, unlocking even greater possibilities for traders."
There is enormous potential for options trading in the crypto industry. In traditional finance, the options trading market is 35-times bigger than the spot market, whereas in crypto it accounts for just 2% of all trading activity. Consequently, crypto options trading has the capacity to grow exponentially. As one of the first professional cryptocurrency exchanges to debut USD-margined options, BIT has emerged as the industry’s leading platform for crypto options trading. Besides ADA options, BIT also supports Bitcoin (BTC), Ether (ETH) and TONcoin (TON) and has the capacity to quickly add support for new digital assets.
ADA/USD options trading is available on BIT now, validating its unique ability to rapidly incorporate new altcoin options markets that are denominated in and settled with USD. BIT's unified margin system allows users to utilize all assets in their accounts as trading collateral with a haircut ratio. ADA’s haircut ratio is now 15%, meaning users can use their ADA as collateral and trade options at a 15% discount.
BIT is a full-featured cryptocurrency exchange that is designed for use by professionals, with advanced risk management and fund efficiency supported by Portfolio Margin and Unified Margin.
BIT was launched in August 2020 as an affiliate to Matrixport, a prominent crypto financial service company. BIT is one of the top crypto options trading platforms which offer innovative USD-margined trading pairs.
About Darley Technologies
Darley Technologies is a pioneering liquidity provider for options trading in the cryptocurrency space, with a mission to provide deep and reliable liquidity at competitive prices. Based in Zug, Switzerland, the heart of Europe’s blockchain ecosystem, Darley Technologies brings together teams of highly experienced scientists, developers and traders to design and engineer the most advanced network infrastructures, technology and trading algorithms, enabling it to successfully execute its mission across multiple venues worldwide.
About DWF Labs
DWF Labs is a global digital asset market maker and multi-stage web3 investment firm, providing support from token listing to market making to OTC trading solutions. DWF Labs seeks to invest and support bold founders who want to build the future of Web3.
DWF Labs is present in Singapore, Switzerland, South Korea, the BVI, and the UAE and trades almost 2,000 pairs with a daily volume that places DWF Labs among the top 5 ranking entities trading on the world’s top 40 exchanges.