B2C2 claims crypto market’s first non-deliverable forward

B2C2, the market-maker owned by SBI Financial Services, claims to have executed the crypto industry’s first non-deliverable forward (NDF) with trading firm QCP Capital this morning, according to a statement.

The size of the transaction was not disclosed. 

B2C2 said NDFs give institutions a familiar route to gaining exposure to crypto, without having to take ownership of it. The instruments are standardized and trade on foreign exchange markets.


Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

Bitcoin was used as the underlying asset in the transaction, which was denominated in United States dollars.

“QCP views NDFs as a gateway to crypto markets for traditional financial institutions, such as investment banks, that are currently unable to handle the underlying assets,” said Darius Sit, co-founder of QCP Capital, which specializes in options and derivatives.

The CME CF Bitcoin Reference Rate (BRR) was used as the reference rate used for the derivative product, which has a maturity date of November 19, 2021.

Founded in 2015 with its headquarters in the United Kingdom, B2C2 helps a range of crypto services and investment firms with access to liquidity. It was acquired by Japanese finance conglomerate SBI in December 2020 for an undisclosed sum.

About Author

Ryan Weeks is deals editor at the The Block, focused on fundraising, M&A and institutional trends in the crypto space, among other things. He is particularly interested in investigative work — so please send tips! Ryan previously worked at Financial News, Dow Jones as a fintech correspondent in London. Prior to that, he wrote for several different publications, including Sifted, AltFi and Wired. Beyond journalism, Ryan is a keen reader and writer. He enjoys all things active, especially running, rugby, climbing and tennis.