Paradigm Launches ‘Block Trading’ Service for MATIC, SOL, XRP Options

The over-the-counter (OTC) liquidity network Paradigm has introduced a new block trading service for linear altcoin options on the centralized cryptocurrency exchange Deribit. The first trade, involving MATIC call options set to expire on May 31, was conducted between QCP Capital and Galaxy Digital.

Paradigm, a leading crypto OTC liquidity network, revealed on Monday its new block trading facility on Deribit, a top derivatives exchange, for options associated with key alternative cryptocurrencies (altcoins) such as MATIC, SOL, and XRP. “Clients can now engage in block trades for Polygon (MATIC), Solana (SOL), and Ripple (XRP) options,” Paradigm stated, noting that these linear options will provide payouts that closely match the price movements of the respective underlying assets.

Options are financial derivatives that grant the purchaser the right, but not the obligation, to buy or sell the underlying asset at a set price by a certain date. Call options allow buying, while put options permit selling.

Block trades are privately arranged transactions in futures, options, or combinations thereof that surpass specific volume thresholds. They are typically negotiated using communication technologies like Paradigm, where parties agree on a price before the trade is executed and cleared by an exchange, in this case, Deribit.

Block trades are designed to minimize slippage or the costs tied to transaction execution and to have a negligible impact on the current market price.

Since its launch in 2016, Paradigm’s OTC network has become a go-to for institutional investors for executing block trades. To date, the platform has facilitated nearly $400 billion in volume and, as of May, represents 17% of the total bitcoin and ether options activity on Deribit.

Paradigm’s latest service offering has already attracted participants. The platform announced the successful completion of its first trade on Monday, involving 500,000 units of MATIC call spreads between QCP Capital, based in Singapore, and Galaxy Digital. The trade, facilitated by Paradigm and executed on Deribit, involved MATIC call options with strike prices of 80 cents and 95 cents, expiring on May 31. MATIC serves as the native cryptocurrency of the Polygon Network, utilized for staking and gas fees.

“We’re excited to see Paradigm extend its block trading capabilities to include linear altcoin options, beginning with this groundbreaking MATIC options transaction on our exchange. This development not only enhances our combined offerings but also paves the way for future first-time blocks in SOL and XRP,” said Luuk Strijers, CEO of Deribit.