Deribit, an exchange for futures and options on BTC and ETH has partnered with Paradigm, a messaging service for institutional traders. The partnership will introduce block trading for crypto derivatives.

Paradigm is a new messaging service. However, the platform has already enlisted big companies. With this partnership, traders can now negotiate with counterparties on the Paradigm platform. Deribit will automatically place and clear on their order. Deribit has an insurance fund that covers losses from bankrupt traders. The exchange has set a minimum size for its block trades at 40 Bitcoin and 800 Ether, or approximately $400,000 and $150,000. This is for options contracts of those digital currencies. Ten of the largest crypto trading firms have signed up for the service. However, Paradigm founder Anand Gomes revealed the only one which is QCP Capital. This block trading for crypto derivatives will thus seek to move the market closer to the mainstream.

Deribit is in Amsterdam and the Dutch authorities have not regulated it. This is because of its contracts payout in cryptocurrency. The Dutch law defines a derivative as a cash-settled contract as per the source.

Block trades are prevalent in larger options markets. The initiative is thus part of a broader effort to create a professional market for crypto derivatives. Recently, crypto giant Binance had launched its Over-the-Counter (OTC) service, Block trading. The service will, therefore, allow customers to trade larger amounts of cryptocurrency above 10 BTC quickly and securely