The institutionalization of Cryptocurrencies accelerates quickly.
Crypto Derivatives Exchange Deribit’s On-Demand Liquidity Tool, the defined block request-for-quit (RFQ) interface, has recorded a cumulative trading volume of over $ 23 billion in less than four months ago its debut in early March.
Deribit is a prominent derivative exchange that offers the world’s largest opportunity market for dealers of Bitcoin
Ether, Solana and XRP. It also offers futures and spot trading.
The exchange introduced the Block RFQ system in March, where participants (Takers), typically institutions and traders, request pricing for a structure-one single instrument shop or a multi-net strategy involving spot, futures or options. A block trade is a major transaction.
Market manufacturers, devices that are tasked with providing liquidity, then respond with either single or double-sided quotes, after which the best offer on the bid and the request will be shown to the taker. The best offer on the bid and the best offer on the request then appears to taker that can act by crossing against either the bid or the question.
The system allows large dealers to execute orders more efficiently outside of posted public order, which ensures minimal impact on market prices.
Imagine buying vegetables in large quantities directly from a farm (OTC) and receiving a better price and more flexible expression rather than offering a crowded market where a large order can raise prices significantly.
“The RFQ system allows for multi-leg trades, more producer quotes and greater price efficiency-there improves the performance of large OTC trades, while the minimization of negative choice. It reflects strong institutional demand and deribit’s continued focus on liquidity and commercial quality,” Deribit’s CEO Luuk Strijers Coindesk said.
Strijers noted that the system is targeted at the needs of professional and agency trade operations, such as support for complex structures and large quantities.
“Block RFQ lets multiple liquidity providers compete for partial quotes, and manufacturers benefit from reduced negative choice, allowing tighter quotes while takers enjoy price improvements and anonymity options,” Strijers noted.
The RFQ system handled trades worth $ 883 million in March, with activity blooming at $ 6.3 billion in April. The momentum continued in May, with the context reaching $ 9.8 billion and exceeded $ 6 billion in just the first half of June.
If that is not enough, the percentage of block dealers performed via Deribits RFQ has risen to 27.5% this month, up from 17% in April and 21% in May.
