Deribit, the largest crypto options exchange in terms of volume, has unveiled plans to expand its offerings by introducing support for derivatives linked to XRP, SOL, and MATIC.
The Netherlands-based exchange made this announcement via its official Twitter account (formerly known as Twitter), indicating that it intends to introduce options trading for these additional altcoins in the near future. However, the exchange did not specify the launch date for these new trading options.
We’re bringing linear options for SOL, XRP, and MATIC to the table. 📈
🔥 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.https://t.co/gNm1861ygB
— Deribit (@DeribitExchange) October 9, 2023
Deribit offers options and perpetual futures contracts for Bitcoin and Ethereum alongside volatility futures. Its options contracts grant holders the right, but not the obligation, to purchase or sell an underlying asset at a predetermined price on or before a specified expiration date.
However, since its establishment in 2016, the exchange has primarily focused on the two leading cryptocurrencies, Bitcoin and Ethereum, and lacked diversity in the variety of assets it provides available for trading.
The new XRP, SOL, and MATIC options aim to capture the growing demand for altcoin derivatives as participation increases in digital assets beyond BTC and ETH. Traders often use BTC and ETH options to hedge altcoin positions. Offering direct options for these altcoins is expected to provide traders with more precise instruments for managing their portfolios.
Deribit currently dominates the crypto options market, accounting for over 85% of the global options trading volume. Despite operating without regulatory oversight, the exchange has implemented its own Know Your Customer (KYC) and Anti-Money Laundering (AML) policies and avoids jurisdictions with stricter regulatory requirements.
In addition to expanding its offerings, Deribit also revealed its application for a Multilateral Trading Facility (MTF) license under the European Union’s new regulatory framework, MiCA (Markets in Crypto-assets). These regulations, which the EU Parliament passed in April 2023, are designed to enhance customer protection in the crypto asset market by imposing liability on service providers for potential losses of customers’ crypto assets.
Under the new regulations, firms engaged in issuing, trading, and safeguarding crypto assets, tokenized assets, and stablecoins within the European Union’s 27-member bloc are required to obtain a license.
Deribit’s pursuit of regulatory approval is seen as a move to offer investors greater legal certainty and solidify its position in the market.
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