Paradigm Partners with FTX to Trade Futures Spreads

In conjunction with FTX, Paradigm (a platform for investing in digital assets) has announced the introduction of futures range trading (a well-known crypto exchange). Paradigm noted in a blog post released on Friday that with the respective agreement, users would be able to enjoy one-click trading without any risk connected to the spread between perpetual, fixed maturity, and spot futures.

FTX Selects Paradigm as a Trading Partner for Future Spreads

Litecoin (LTC), Chainlink (LINK), Dogecoin (DOGE), ApeCoin (APE), Avalanche (AVAX), Solana (SOL), Ether (ETH), and Bitcoin will be the underlying cryptocurrencies for the futures contracts (BTC). FTX will provide guaranteed atomic execution as well as clearance from both legs to execute the trades. According to Anand Gomes (the CEO of Paradigm), the arrangement was designed to attract the most recent crypto investors who are interested in regular transactions and benefiting from FTX-based futures contracts and spot buys.

Gomes stated that the launch could open the door for more exclusive product lines in the future.The cryptocurrency exchanges platform has formally announced the news on its official Twitter channel, revealing that its clients will now be able to trade the gap between futures instruments and spot purchases on FTX at a lower cost and with greater convenience.

Paradigm Continues to Support Crypto Initiatives

The trade venue claimed that using atomic execution in terms of widens trading’s two legs was substantially less risky than those executed on a traditional exchange, allowing market makers to appraise much-constrained prices as well as in extremely large sizes. Paradigm disclosed that the fees will be half of what it would take to perform two different completed trades.

In 2019, Paradigm and Deribit (a cryptocurrency options exchange) collaborated to develop a solution for block trading. The venue also invested in a number of crypto-related companies, including contributing to a $1 billion investment in Citadel Securities, the futures market division of Citadel (a hedge fund), a round of up to $12 million for Synthetix, and a fundraising round of almost $400 million for FTX.US.

In November, a $2.5 billion fund was established to diversify its investment portfolio into bitcoin technologies and platforms. Paradigm co-founder Fred Ehrsam stated that the company was in its early stages.