In conjunction with FTX, investing platform Paradigm, which facilitates transactions involving digital asset holdings, has announced plans to launch a futures spreads trading service (a well-known crypto exchange). On Friday, Paradigm said that thanks to the partnership, its customers would be able to engage in risk-free, one-click trading across perpetual, fixed maturity, and spot futures.
FTX Announces Paradigm as Trading Partner for Future Spreads
Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Chainlink (LINK), Dogecoin (DOGE), ApeCoin (APE), Avalanche (AVAX), Solana (SOL), and Ether (ETH) will all serve as underlying assets for the futures contracts (BTC). FTX will provide assured atomic execution and clearance from all trading parties involved in a transaction. According to Anand Gomes, CEO of Paradigm, the plan was made to entice new crypto investors who are interested in making frequent transactions and may therefore benefit from the FTX-based futures instruments and spot purchases.
Gomes speculated that this launch would open the door for more limited edition products to be made available. The crypto exchange has made an official announcement on its Twitter page, letting users know that the spread between futures instruments and spot purchases will now be more accessible and cheaper for trading on FTX.
Paradigm continues to support crypto-related efforts with funding.
The investment platform said that using atomic execution for both legs of spreads trading was physically safer than performing these actions on a traditional exchange, allowing market makers to evaluate considerably more restricted prices and in much larger volumes. Compared to the cost of executing two independent full deals, the costs predicted under this paradigm are 50% cheaper.
In 2019, Paradigm collaborated with Deribit (a crypto derivatives exchange) to launch a block trading solution. The platform has also contributed to the funding of other crypto-related initiatives, including a $1 billion investment in Citadel Securities (the market maker arm of Citadel, a hedge fund), a round of up to $12 million for Synthetix, and a round of approximately $400 million for FTX.US.
In November, a $2.5 billion fund was launched to invest broadly across cryptocurrency-related protocols and platforms. Co-founder Fred Ehrsam described the early stages of Paradigm’s development.