Crypto Derivatives Exchange, Delta, Debuts Call and Put Options to be Settled in Tether (USDT)
Delta Exchange has begun the Call and Put options that will be settled via the USDT stablecoin, making a debut as the first crypto derivative platform to issue such products. The exchange, whose headquarters are based in Singapore, announced this news on September 17 and noted it is one of the four crypto exchanges that currently offer a complete order book for Call and Put options.
The contracts’ underlying digital assets will be Bitcoin (BTC), Binance coin (BNB), Chainlink (LINK), and Ether (ETH), while the maturity periods range from daily to monthly. Unlike futures, options contracts give holders the right to buy or sell but not the obligation, as is the former. This means that option contract holders can choose to execute their positions, depending on whether they are in or out of the money.
Similarly, Delta’s option contracts will give the exchange’s users an option to buy the underlying digital assets if the price goes down, and they were holding a call option. As for the put options, they will sell the underlying if the price goes up or opt for the contract to expire if the target price is still lower than anticipated.
Pankaj Balani, the CEO of Delta Exchange, noted that the options market is an ‘integral part’ of the whole crypto derivatives niche and is therefore optimistic that volumes will surpass futures demand within the next few months. The options have already been listed within the Delta Exchange trading portfolio and were made available to both retail and institutional prospects as of yesterday.
With more speculation and advanced trading in crypto markets, derivative products gain traction amongst the stakeholders in this burgeoning ecosystem. Delta’s Put and Call options further scale the range of available products and probably be among the pacesetters in a space that has traditionally been viewed as ‘sophisticated.’