Research Summary
Deribit, the world’s largest crypto options and futures exchange, has entered into a strategic partnership with Hidden Road Partners, a global credit network for institutions. The partnership will allow Hidden Road’s clients to access Deribit’s crypto derivatives. This follows Deribit’s recent approval from VARA regulators in Dubai for a derivatives license.
Key Takeaways
Strategic Partnership Between Deribit and Hidden Road Partners
- Collaboration for Enhanced Access: Deribit and Hidden Road Partners have formed a strategic partnership. This collaboration will enable Hidden Road’s institutional clients to access Deribit’s crypto derivatives, thereby expanding their trading options.
Deribit’s Regulatory Approval
- First Venue to Receive Approval: Deribit has become the first venue to receive approval from VARA regulators in Dubai for a derivatives license. This regulatory approval enhances Deribit’s credibility and positions it as a trusted trading venue for digital assets.
Hidden Road Partners as a Prime Broker
- Prime Broker Role: Hidden Road Partners will operate as a prime broker as part of the partnership. This role will allow Hidden Road to custody and settle assets via their partner of choice, thereby increasing accessibility for institutional entities.
Deribit’s Offering for Crypto Options
- Industry-Leading Derivatives Products: Deribit’s offering for crypto options is a perfect fit for Hidden Road’s global credit network. The partnership will provide Hidden Road’s clients with access to industry-leading derivatives products and robust trading infrastructure.
Increased Liquidity for Deribit
- Additional Liquidity: The partnership with Hidden Road Partners will provide the entire Deribit ecosystem with additional liquidity. This increased liquidity will benefit all those trading on Deribit’s exchange.
Actionable Insights
- Monitor the Impact of the Partnership: Stakeholders should keep an eye on the impact of the partnership between Deribit and Hidden Road Partners. The collaboration could potentially lead to increased trading volumes and liquidity on Deribit’s platform.
- Assess the Regulatory Environment: The approval of Deribit’s derivatives license by VARA regulators in Dubai indicates a positive regulatory environment for crypto derivatives. Stakeholders should assess this environment and its potential impact on the growth of the crypto derivatives market.
- Understand the Role of Prime Brokers: The role of Hidden Road Partners as a prime broker in this partnership highlights the importance of prime brokers in the crypto market. Stakeholders should understand this role and its implications for the custody and settlement of assets.
