For futures contracts on eight cryptocurrencies, the global exchanges FTX and Paradigm will provide assured atomic execution and clearing of both legs of the trades.
Spread trading will now be available, according to a recent announcement made by Paradigm in conjunction with the cryptocurrency exchange FTX.
Users will be able to use “one-click trading with no leg risk for the spread between spot, perpetual, and fixed maturity futures on Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Avalanche (AVAX), ApeCoin (APE), Dogecoin (DOGE), Chainlink (LINK), and Litecoin.” This information was provided by Paradigm as part of the FTX partnership (LTC).
FTX will ensure both the atomic execution of the transactions as well as their clearance before the deals are completed.
Anand Gomes, CEO of Paradigm, said that the arrangement attracted new cryptocurrency investors who were interested in cash and carried trades, which included leveraging cryptocurrency spot purchases and futures instruments traded on FTX.
According to the company, utilizing nuclear implementation for both legs of the spreads trading was systemically less risky than using regular exchange execution. As a result, market makers were able to quote prices that were significantly more precise and in significantly larger sizes after adopting atomic execution. According to Paradigm, the expenses will be reduced by fifty percent in comparison to the scenario in which two separate outright transactions are carried out.
In 2019, a block trading solution was developed via a partnership between Deribit, a cryptocurrency derivatives exchange, and Paradigm.