FTX Partners with Paradigm for 'One-Click' Futures Spread Trading
Godfrey Benjamin Aug 14, 2022 10:30
Crypto assets trading platform FTX has partnered with Paradigm, one of the largest institutional liquidity network in launching a “one-click” future spread trading that integrates eight (8) different cryptocurrencies
Crypto assets trading platform FTX has partnered with Paradigm, one of the largest institutional liquidity networks in launching a “one-click” future spread trading that integrates eight (8) different cryptocurrencies.
According to the announcement, the partnership will enable users to trade for half the fees of trading usually, as against “trading two individual contracts outright”.
The cryptocurrencies that will be traded on the new futures spread initiative include Bitcoin (BTC), Solana (SOL), Dogecoin (DOGE), Ethereum (ETH), and Litecoin (LTC), Avalanche (AVAX), Chainlink (LINK), and ApeCoin (APE).
With the new partnership, crypto investors that seek yields “can now execute cash and carry trades leveraging FTX’s spot and futures instruments across multiple coins and futures expirations”. With just one click, traders are enabled to fund rates on perpetual, other than “manage each leg individually”.
According to the announcement, ‘spreads trading on Paradigm has guaranteed atomic execution of both legs, so is structurally less risky when compared to executing individual legs via a traditional exchange order book. This lower risk profile enables market makers to quote much tighter prices and in significantly larger sizes.’
The CEO of FTX, Sam Bankman-Fried said the partnership with Paradigm to birth this new initiative is an exciting one, citing that it is as a result of an existing relationship. He added that the new development is the first that enables cryptocurrency investors to carry out “cash and carry trades” through the platform of both companies.
Commenting on the partnership, the CEO of Paradigm, Anand Gomes noted that the two companies have now launched an initiative that will improve the cryptocurrency ecosystem remarkably. Adding that, “with basis trading becoming a tradeable asset class on FTX, we should see significant interest from both crypto-natives trading yield as well as new investors in crypto who can now trade cash and carry as a single asset”.
Partnerships such as this and the earlier reported one between Coinbase Global and BlackRock has continued to signal a positive trenf in the crypto ecosystem, and one that may continue into the near future.
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