Caspian, the virtual currency trading, portfolio and risk management firm, announced a partnership with Deribit, the crypto-derivatives exchange to launch cryptocurrency futures and options. The partnership marks the first time an institutional platform is providing both futures and options trading in the digital assets class.
Announced on March 20 via a press release, the partnership will see Deribit included in the Caspian ecosystem, which includes “over 30 major crypto exchanges and liquidity providers”.
Deribit, the Amsterdam-based exchange, currently facilitates trading in Bitcoin [BTC] and Ethereum [ETH] options and future contracts along with a Deribit perpetual swap product for the top cryptocurrency. The press release also added that the futures-crypto-exchange also offers “100x leverage and competitive trading fees”.
Caspian will build an application to connect the crypto-derivatives exchange so that it can process “high volumes” and ease the client’s access to the order books. The statement said,
“The Caspian platform connects to Deribit through an advanced API that supports high volumes with ultra-low latency and provides clients with access to the exchange’s full options order book.”
Robert Dykes, the CEO of Caspian, aims to create a crypto-derivatives market that mimics the traditional markets in infrastructure. He stated:
“Our goal at Caspian is to provide crypto traders and investors the same standard of tools and service that exist in the traditional market.”
John Jansen, the CEO of Deribit, stated that institutional investors will see this partnership as a “gateway” into the cryptocurrency markets and that it will push the wave of crypto-adoption within the derivatives realm.
Caspian is the product of a partnership between Kenetic Capital, a Hong Kong-based cryptocurrency firm, and the American trading services company, Tora. In September 2018, the Caspian project saw a massive $16 million investment from Galaxy Investment, Octagon Strategy, Global Advisors and Bletchley Park and Kenetic.
Coincidently, the Chicago Board Options Exchange [CBOE] delisted their Bitcoin futures contract for March 2019. This delisting will provide a great impetus to its cross-town rival, the Chicago Mercantile Exchange [CME], to capture the Bitcoin derivatives market.
Back in late-2017, the CBOE and CME introduced Bitcoin futures, which lead to a mammoth bullish wave to ensconce the market. Bitcoin rose over the $19,000 mark and the collective market was valued at over $800 billion.
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Graduate of Finance and Economics, interested in the intersection of the world of decentralized currency and global governance.