Digital asset investment firm Paradigm has announced the launch of spreads trading in partnership with crypto exchange FTX.
In a Friday blog post, Paradigm said under the FTX partnership users would be able to utilize “one-click” trading with “no leg risk” for the spread between spot, perpetuals and fixed maturity futures on Bitcoin (BTC), Ether (ETH), Solana (SOL), Avalanche (AVAX), ApeCoin (APE), Dogecoin (DOGE), Chainlink (LINK) and Litecoin (LTC). FTX will provide “guaranteed atomic execution and clearing of both legs” for the trades.
According to Paradigm CEO Anand Gomes, the arrangement was aimed at drawing in new crypto investors interested in cash and carry trades — leveraging crypto spot purchases and futures instruments on FTX. Gomes added that the rollout could lead to new product offerings “further down the road.”
FTX has officially partnered with leading institutional liquidity network @tradeparadigm to make it easier and cheaper than ever to trade the spread between spot, perpetuals and futures instruments on $BTC, $ETH, $SOL, $AVAX, $APE, $DOGE, $LINK and $LTC!https://t.co/O7chj4l09C pic.twitter.com/mbqjpo6qCQ
— FTX (@FTX_Official) August 12, 2022
The investment firm said using atomic execution for both legs of the spreads trading was “structurally less risky” than those executed on a traditional exchange, allowing market makers to “quote much tighter prices and in significantly larger sizes.” According to Paradigm, the fees will be 50% less than that when executing two individual outright trades.
In 2019, Paradigm partnered with crypto derivatives exchange Deribit to launch a block trading solution. The firm has also invested in several crypto-related projects, including contributing toward a more than $1 billion investment in Citadel Securities, the market maker arm of hedge fund Citadel, a $12-million round for Synthetix, and a $400 million funding round for crypto exchange FTX.US.
In November, Paradigm launched a $2.5-billion fund to expand its investment into crypto companies and protocols. Paradigm co-founder Fred Ehrsam said at the time the firm was “just getting started.”