BIT and Paradigm have collaborated to launch USD-margined options block trade functionality. BIT is a professional crypto exchange specializing in options trading, while Paradigm is the largest institutional liquidity network in crypto derivatives.
The partnership aims to offer institutional traders greater access to USD-margined options, making it easier and more convenient to trade Bitcoin (BTC), Ethereum (ETH), and Toncoin (TON) options denominated in and settled with USD or USD Coin (USDC). This upgrade is expected to increase capital efficiency and improve liquidity for institutional traders.
Paradigm’s platform enables traders to create RFQs¹ and on-demand order books for the instrument or strategy of their choice, with deep liquidity provided by its network of counterparties. Institutional clients can utilize Paradigm’s platform to source on-demand liquidity for BIT’s USD-margined options. Trades executed on Paradigm are immediately routed to BIT for clearing and settlement. All Paradigm trades are executed away from BIT’s order books enabling clients to execute trades of any size or complexity with no market impact.
BIT launched its USD-margined options trading service in October 2022. Trading options denominated in and settled with USD or USDC is easier and more convenient compared to coin-margined options, saving the trouble of putting up a wide range of crypto assets as collateral. This way of trading options also gives BIT the ability to quickly support altcoin options trading, such as TON options, launched in January 2023.
To start trading USD-margined options, traders only need to follow a few simple steps. They must finish KYC2 verification on BIT, generate an API Key with Block trade permission on BIT, open an account on Paradigm, and set up their BIT API key. Once the setup is complete, traders can negotiate their USD-margined options block trade on Paradigm and settle it on BIT.
In summary, the collaboration between BIT and Paradigm aims to meet the demand of institutional traders by offering greater access to USD-margined options. This upgrade is expected to increase capital efficiency, improve liquidity, and provide traders with an enhanced trading experience.
¹ Paradigm DRFQ functionality for BIT’s USD-margined options will be available shortly after this launch.