Tag: CRYPTO DERIVATIVES

TP Global FX Broker Taps Belfrics International to Trade Crypto Derivatives

by Blockchain News

TP Global Limited, a Mauritius regulated award-winning, new-age Foreign Exchange (FX) brokerage firm, announced on Friday that it has selected Belfrics International to enable it to offer crypto derivatives and blockchain solutions to its customers.

Belfrics International is a global blockchain technology firm that runs cryptocurrency exchanges on its proprietary platform.

TP Global signed a partnership MOU with Belfrics International to facilitate the deal. Based on the collaboration, TP Global will offer crypto futures and options trading to enable investors to trade volatility directly and protect against downside risks.

The launch coincides with the ongoing highly volatile period in the crypto market triggered by the dramatic fall of Terra’s LUNA stablecoin and the collapse of recent crypto lending platforms including Celsius Networks, Voyager Digital, among others.

Nitish Sharma, Global CEO, TP Global FX, talked about the development: “With the growing demands of the Crypto derivatives industry, our users needed our services more than ever. After carefully evaluating our options, we decided to partner with Belfrics offered the best solution. We believe trading in Crypto Derivatives will see massive growth as cryptocurrencies gain popularity all over the world. We had planned to enter the ecosystem of cryptocurrencies and have found an able partner in Belfrics who will not only support us in crypto liquidity, but also with blockchain solutions to expand our services to new domains.”

Established in 2014, TP Global FX Limited is a major online FX trading broker that has footprints in the Middle East and African region and recently entered the South American and South East Asian markets. TP Global FX has offices in Europe, Africa, Mauritius, Nigeria, Armenia, Vanuatu, and Dubai.

Praveen Kumar, Belfrics CEO and Founder, also commented: “We are proud to partner with FX broker TP Global on Belfrics’ crypto derivatives and blockchain solutions. This strategic partnership is in line with our strategy of increasing our B2B services, and it will support our goal of adding traders and investors to the Belfrics Exchange. We have great expectations for our collaboration in strengthening and promoting our ability to provide global trading in digital assets, cryptocurrencies, and crypto derivative contracts, as well as our KYC compliant blockchain solutions.”

Belfrics operates its cryptocurrency exchanges on its proprietary trading platform on its global KYC blockchain, which is licensed and regulated by the Labuan Financial Services Authority (LFSA) in Malaysia.

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Miami International Holdings Partners with Lukka, Launching Crypto Derivatives

by Blockchain News

Miami International Holdings, Inc. (MIH), the owner of Miami International Securities Exchange and a blockchain data company Lukka Inc, announced on Wednesday that they have entered into a strategic cooperation to launch crypto derivatives on MIH exchange platforms based on Lukka-supplied crypto data.

Miami International Holdings, Inc is also the owner of other options and equities trading platforms, namely, MIAX PEARL, LLC, MIAX Emerald, LLC, Minneapolis Grain Exchange, LLC, and Bermuda Stock Exchange.

The agreement provides MIH with a multi-year global license to use Lukka data to support its exchange-listed crypto derivative products, to be offered for trading on any of MIH exchange platforms.

MIH and Lukka expect the first products to include cash-settled Bitcoin and Ether futures and options, which will be listed on MGEX via the CME Globex® trading platform, subject to regulatory approval.

Other products expected to be listed will include Bitcoin Volatility (BitVol) and Ether Volatility (EthVol) futures and options, also subject to regulatory approval.

Thomas P. Gallagher, Chairman and CEO of MIH, talked about the development: “Our strategic alliance with Lukka allows us to leverage its institutional-grade crypto data to develop proprietary products in the U.S. and international regulatory frameworks that meet the emerging needs of the crypto-asset ecosystem. Lukka provides us with access to unique data and indexes that will further our objectives to introduce digital assets and products through our global group of exchanges, including futures on MGEX and innovative digital assets on BSX.”

The Retail Trend Getting Real

The movement by MIH and Lukka is the latest example showing crypto groups are pushing into the highly regulated U.S. derivatives market as they seek to fulfil demand from retail traders making massive bets on digital assets.

The crypto industry is shifting deeper into regulated markets. It looks to develop a bigger user base and challenge existing financial companies like brokerages that already provide trading in equities and other financial assets.

Crypto groups are now seeking to develop footprints in the tightly supervised U.S. market by acquiring smaller firms already holding licenses to operate in America.

In January, Coinbase bought FairX, a small Chicago futures exchange, to make the derivatives market “more approachable” through its trading app.

Late last year, the move came after Crypto.com struck a $216 million deal for two retail businesses from the U.K.’s I.G. Index. In October last year, FTX US also acquired derivatives platform LedgerX.

Bigger crypto exchanges are buying Commodity Futures Trading Commission-regulated platforms that allow the offering of derivatives like options and futures to retail clients because there is a big demand for leveraged products in the retail client segment.

Last year marked a breakthrough for crypto derivatives. Volumes in the derivatives market overtook the spot or cash market for the first time. In January, derivatives trading represented about three-fifths of the overall market. In February, volumes in crypto derivatives registered almost $3 trillion, accounting for more than 60% of trading in cryptocurrencies, according to data provider CryptoCompare.

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Coinbase Acquires Futures Exchange Amid Plans To Offer Crypto Derivatives to US Customers

by Dailyhodl

Crypto exchange giant Coinbase is announcing a new acquisition that will allow it to expand its product range into crypto derivatives.

Coinbase says it has acquired FairX, a futures exchange that is regulated by the U.S. Commodity Futures Trading Commission.

The cryptocurrency exchange says it will initially offer crypto derivatives to US customers through the new acquisition before offering them on its main Coinbase platform.

“Through this acquisition, we plan to bring regulated crypto derivatives to market, initially through FairX’s existing partner ecosystem.

Over time, we plan to leverage FairX’s infrastructure to offer crypto derivatives to all Coinbase customers in the US.”

Coinbase says that crypto derivatives products are in “high demand from investors who seek to effectively manage risk, execute complex trading strategies, and gain exposure to crypto outside of existing spot markets.”

FairX also offers the Bloomberg US Large Cap Index Futures, a product that grants exposure to the largest 500 US public companies.

Coinbase says that FairX will “operate normally” before the acquisition of FairX is finalized. The acquisition is expected to close by the end of March.

FairX joins other acquisitions made by Coinbase recently. In November of 2021, Coinbase acquired cryptographic security firm Unbound Security primarily for the company’s highly technical skills and expertise.

In November of 2021, Coinbase purchased cryptocurrency wallet platform Bread, a move that gave the exchange the possibility of enabling its users to custody their crypto assets on the Coinbase wallet.

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Crypto derivatives exchange Bitget to list USDC as collateral for margin trading

by Cointelegraph

Derivatives exchange Bitget is set to become one of the first exchanges to list USD Coin (USDC) as collateral for trading crypto derivatives.

The development comes courtesy of a strategic collaboration between the Singaporean crypto derivatives trading service and USDC stablecoin issuer Circle, as reported by Crowdfund Insider on Monday.

Bitget will support USDC margin for Quanto Swap Contract trading as part of the partnership, a move the exchange says will provide more liquidity for the market. USDC now joins Bitcoin (BTC), Ether (ETH), EOS, and XRP as accepted margins for Quanto Swap contracts.

Bitget launched Quanto Swap contracts back in April allowing traders to utilize one or more cryptocurrencies as margins for cross-currency trades.

Quanto Swaps are said to solve the issues related to inverse contracts as well as Tether (USDT)-paired contracts, especially in the area of capital utilization and costs.

Since Quanto Swaps are cross-currency trades with multiple margins, traders can switch markets without having to convert cryptocurrencies.

The collaboration with Circle will also reportedly scale Bitget’s trading channels. USDC will also be available for purchase on the exchange via debit and credit card payment channels among others.

Related: Stablecoin firm Circle to go public in $4.5B blank-check deal

CoinMarketCap data ranks Bitget as the eighth-largest crypto derivatives exchange with a 24-hour volume of almost $4 billion as of the time of writing.

Back in March 2020, the platform began working towards expanding its reach to the United States, securing a license from the U.S. Financial Crimes Enforcement Network. At the time, its 24-hour volume was about $1 billion.

The exchange was also among a list of platforms granted a temporary exemption from Singapore’s crypto exchange licensing regime.

In an interview with Cointelegraph earlier in July, Bitget CEO Sandra Lou stated that crypto exchanges must prioritize regulatory compliance. Indeed, financial regulators across the globe are increasing their scrutiny on exchanges as governments push more stringent policies.