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FTX has partnered with Paradigm. Through the partnership, Paradigm will offer spread trading. The blog post published by Paradigm also added that users would have access to “one-click” trading with zero leg risk after this partnership.
FTX partners with Paradigm
In the blog post published Friday, Paradigm said that the partnership with FTX would allow users to use “one-click” trading with “no leg risk.” It will apply to the spread between the spot perpetuals and fixed maturity futures for many cryptocurrencies, including Bitcoin, Ether, Solana, Avalanche, Dogecoin, Litecoin, Chainlink, and ApeCoin.
Under the partnership deal, FTX will provide “guaranteed atomic execution and clearing of both legs” for trades. The CEO of Paradigm, Anand Gomes, commented on this partnership, saying that it aimed to attract new crypto investors seeking cash and carry trades.
Paradigm will also support crypto investors looking to leverage crypto spot purchases and futures instruments on the FTX exchange. Gomes also added that the rollout could result in new product offerings being launched in the future.
Your capital is at risk.
The firm also added that atomic execution for the two legs of the spreads trading was less risky than the trades executed on traditional exchanges. It will also support market makers by allowing them to quote tighter prices in larger sizes. Paradigm also said that the fees would be 50% below that after executing two individual outright trades.
Paradigm’s venture into crypto
It is not the first time that Paradigm is partnering with a crypto firm to extend crypto services to its clients. In 2019, the company partnered with Deribit, a crypto derivatives exchange, to launch a block trading solution
Deribit and Paradigm planned to remove execution risk linked with the order book after institutional traders negotiate large trades through platforms like Skype and Telegram through this new tool.
At the time, the co-founder and CEO of Deribit, John Jansen, said that institutional traders would benefit from this product when trading options. Jansen also said that options traders could create a portfolio of put and call options in varying sizes and trade them by blocks while adding futures. This would be convenient compared to negotiating and trading options each a time.
Paradigm’s venture into crypto reflects what has been happening with institutional traders. More institutional investors have continued streaming into the crypto space following increased client demand.
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