Crypto derivatives firm Paradigm is set to launch "one-click" futures spread trading in partnership with FTX.
Friday's announcement means that Paradigm users will be able to trade the spread between spot, perpetuals and futures on a range of assets including bitcoin, ether, litecoin and others. FTX will guarantee atomic execution — meaning that trades involving two different blockchains are settled in one transaction — and clearing of both legs through its platform.
The fee on spreads that are executed on Paradigm and then cleared on FTX will be 50% less than executing two separate outright trades. Investors looking for yield can now execute “cash and carry” trades leveraging FTX’s spot and futures instruments in a range of currencies and futures expirations. Cash and carry is a trading strategy where investors take advantage of price discrepancies across markets.
The firms have a longstanding relationship, according to Paradigm CEO Anand Gomes, who added that he expects 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.
“Looking ahead, combining the client base and product expertise of both companies will undoubtedly lead to more synergies and new product offerings further down the road,” Gomes said.
Paradigm launched in 2019 and provides a platform for dealers and market makers to execute large trades in options and futures to settle across a wide range of venues. In December the firm announced it had raised $35 million in a funding round led by Jump Capital and FTX CEO Sam Bankman-Fried's Alameda Research.
Disclaimer: The former CEO and majority shareholder of The Block has disclosed a series of loans from former FTX and Alameda founder Sam Bankman-Fried.
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