Deribit, the world’s leading crypto options exchange, is planning to launch options contracts on three popular alternative cryptocurrencies: XRP, SOL, and MATIC. The move comes amid growing demand and volatility in the crypto market, as well as the exchange’s expansion plans in the European Union.
XRP, SOL, and MATIC are among the top 20 cryptocurrencies by market capitalization, according to CoinGecko.
Options are derivative contracts that give the buyer the right but not the obligation to buy or sell the underlying asset at a predetermined price on or before a specific date. Options can be used to hedge against price fluctuations, speculate on future movements, or generate income from premium collection.
Deribit Seeks to Enter the European Market Amid Regulatory Uncertainty
Deribit already offers options and perpetual futures on Bitcoin and Ether, the two largest cryptocurrencies by market value. The exchange also offers volatility futures, which allow traders to bet on the volatility of Bitcoin and Ether. According to data from Laevitas, Deribit accounts for over 85% of the global crypto options market.
The exchange said it will list XRP, SOL, and MATIC options in the coming weeks, subject to sufficient liquidity and demand. The new products will provide more flexibility and diversity for altcoin traders, who have historically relied on Bitcoin and Ether options to hedge their exposure.
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
In addition to expanding its product suite, Deribit is also seeking a brokerage license in the European Union. The exchange said it has applied for a license in Malta, which has a favorable regulatory environment for crypto businesses. The license will allow Deribit to offer its services to more clients in Europe and comply with anti-money laundering and know-your-customer rules.
Deribit is an independent operating subsidiary of DRB Panama Inc., a company registered in Panama. The exchange was founded in 2016 and has grown to become one of the most dominant players in the crypto derivatives market.