Liquidity platform Paradigm has partnered with cryptocurrency exchange FTX to launch spread trading. The new service will provide support for 7 altcoins, including Avalanche (AVAX). Investors of these altcoins will be given a chance to take advantage of price changes. Here are the details…
Partnership for Avalanche, SOL, APE from Paradigm and FTX
In a blog post on Friday, Paradigm announced the FTX partnership. Within the scope of this partnership, it is possible to benefit from changes in altcoin prices with spread transactions. Spreads involve buying a security and selling another related security, such as a futures contract, to produce an overall net trade with a positive value called the spread. This trade takes advantage of the volatility in market prices. It may require taking a long position in an asset while also selling the related derivative.
The companies announced Friday that Paradigm users are spot on, perpetual on Bitcoin, Ethereum (ETH), Solana (SOL), Avalanche (AVAX), ApeCoin (APE), Dogecoin (DOGE), Chainlink (LINK), and Litecoin (LTC) via FTX. and futures instruments will be able to receive the difference. According to Paradigm CEO Anand Gomes, the regulation was aimed at attracting new crypto investors interested in cash and carry transactions. Gomes added that this could lead to new product offerings “further down”.
Managers’ comments
FTX is the third exchange to partner with Paradigm (not to be confused with the crypto investment firm of the same name) in futures. Paradigm is integrated with Bybit and Deribit. In February it began offering cleared futures spreads through these exchanges. “Having more exchanges means that Paradigm users have alternative places to clear and store assets, as well as benefit from pricing shifts,” said Micki Koonin, Paradigm co-founder.
Koonin noted that FTX is the first exchange where Paradigm can offer spot trading as part of the spread. The exchange also allows trading futures spreads on more coins like APE and DOGE. The company said the spread trade on Paradigm guarantees that both legs are executed atomically. Spreads executed in Paradigm and cleared in FTX are charged half the fees compared to executing two separate transactions. Paradigm has more than 1,000 institutional clients that trade around $10 billion per month, including hedge funds, over-the-counter trading, loans, structured product issuers, market makers and family offices.
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