Deribit’s Plans to Expand Options Offering
The largest cryptocurrency options exchange, Deribit, has recently announced its plans to expand its options offering to include three additional altcoins. Deribit intends to introduce options trading for Solana (SOL), Polygon (MATIC), and Ripple (XRP). Options are derivative contracts that give traders the right to buy or sell a specific token at a predetermined price in the future.
This decision by Deribit comes at a time of declining asset prices and regulatory uncertainty. Despite these challenges, the exchange is determined to enhance its offerings and cater to the evolving needs of crypto traders. To further expand its reach, Deribit is also planning to obtain a brokerage license in the European Union (EU). The company aims to empower crypto traders worldwide and establish itself as a leading option exchange.
Benefits and Impact of the Expansion
The addition of Solana, Polygon, and Ripple to Deribit’s options portfolio has been well-received by the crypto community. Many traders believe that this move will contribute to increased liquidity in the market and provide better risk management options. Currently, Deribit controls over 85% of the digital asset options market, offering futures contracts for Bitcoin (BTC) and Ethereum (ETH). The expansion into altcoin options reinforces the exchange’s position as a market leader.
Luuk Strigers, the Chief Commercial Officer of Deribit, expressed confidence in the company’s expansion plans, stating that reduced volatility will not hinder their growth strategy. Richard Galvin, the co-founder of Digital Asset Capital Management, highlighted the importance of altcoin liquidity, emphasizing that Ethereum alone cannot serve as an effective hedge for a diverse cryptocurrency portfolio.
Although Deribit did not specify a timeline for obtaining the EU brokerage license, industry observers anticipate that it will happen soon, considering the exchange’s progressive expansion into Europe. This move aligns with the Markets in Crypto Assets (MiCA) regulations set to be implemented by 2024, prompting companies to comply with the new framework. Furthermore, Deribit is exploring opportunities for expansion in Dubai, capitalizing on the region’s favorable crypto regulations.
To augment its derivative trading services, Deribit recently launched a free spot crypto trading service. This service acts as a gateway to the derivatives market, attracting more traders and enriching the overall trading ecosystem.
“Plus, we’re seeking to apply for a brokerage license in the EU! Stay tuned for more updates on our journey to empower crypto traders worldwide.”
– Deribit tweet
