In an interesting turn of events, the largest cryptocurrency options exchange, Deribit, recently announced plans to introduce options trading for three additional altcoins: Solana (SOL), Polygon (MATIC), and Ripple (XRP). Now, options trading is a pertinent part of the derivatives sector that allows customers to own the right to buy or sell a designated token at an agreed price in the future. By incorporating options in spite of tumbling asset prices and regulatory uncertainties – an action that might sound counter-intuitive – Deribit hopes to reposition itself in a volatile market.
This expansion has been heartily welcomed by a multitude of crypto traders, who believe this could be the shot in the arm they need to beef up market liquidity and enable effective risk management. Deribit, on the other hand, sees this as a means of bolstering its stance as the leading options exchange in this turbulent market, despite a noticeable slump in derivative trading volumes from $2 trillion in January to approximately $1.5 trillion in September.
Chief Commercial Officer of Deribit, Luuk Strigers, confidently counters naysayers, asserting that decreased volatility will not impede the venture’s expansion plans. In his recent interview, Luuk addressed the concern about launching new products in unstable times but remained optimistic about an anticipated volatility spike as the platform launches options on three altcoins.
Co-founder of Digital Asset Capital Management, Richard Galvin, joins the choir of approving voices, acknowledging the bounty of introducing altcoin liquidity – a benefit that was previously limited to Ethereum alone due to its comparatively low volatility.
In an interesting side note, Deribit also divulged plans to broaden its horizons to Europe and is reportedly working on obtaining an EU brokerage license. The time frame remains unspecified, but with the cryptocurrency firm’s growth and Europe’s favourable tilt towards the evolution of crypto regulations, many insiders project it to be sooner rather than later. The firm’s ongoing attempt to branch out to Dubai, backed by the region’s progressive crypto policies, only substantiates this claim.
A noteworthy marker in Deribit’s evolution this year has been its launch of a free spit crypto trading service, crafted to bolster its derivative trading. This move has been positioned as a stepping stone towards the derivatives market by the firm. As events unfold, it’ll be intriguing to observe how this bold move by the cryptocurrency exchange affects traders and the market as a whole.
Source: Cryptonews
