Optiver Principal Strategic Investments (PSI) confirmed, earlier last month, that it took part in the Series A funding round for Paradigm, a trading platform for cryptocurrency options and futures.
New York-based Paradigm is focused on supporting institutional-level liquidity for cryptocurrency derivatives through their chat-based multi-dealer RFQ. Platform users are able to source liquidity “tailored to their price, size, and risk preferences, helping to facilitate complex, multi-leg options trades, cleared at the venue of the user’s choice.”
For over 35 years, Optiver has been focused on enhancing international financial markets through its core activity of “making markets in listed derivatives and equities.”
Although the crypto-asset options market is still in its nascent stages, the team at Optiver is expecting more demand from institutional and retail investors to “spur rapid growth.” Via its investment in Paradigm, Optiver sees a key opportunity to offering liquidity to this space, which will “help lower spreads and make the market more efficient and stable.”
Traditionally used as hedging tools, options can “allow crypto investors, as well as companies active in the crypto ecosystem such as miners, to efficiently hedge their risks,” the update explained while noting that a robust and liquid options market would also “encourage participation from institutional investors who seek to trade the volatility of the crypto market itself.”
Liam Smith, Head of Corporate Strategy at Optiver US, stated:
“We’re excited to support Paradigm in their mission to bring on-demand liquidity to the crypto options market. Through their innovative RFQ platform, Paradigm is helping to facilitate price discovery and deepen liquidity in the emerging digital assets volatility space, which closely aligns with Optiver’s commitment to competitive and transparent markets.”
Optiver PSI aims to “identify entrepreneurs shaping financial markets of the future,” the announcement noted.
With a “keen interest” in upcoming Fintech, IT infrastructure and digital asset ventures, the Optiver team seeks to “incubate and empower the most impactful projects in the financial industry.”
Through a partnership with us, Optiver PSI offers founders “long-term” guidance, innovative technological capabilities, mentorship and diverse resources.
