Paradigm said that under the FTX partnership, users will be able to use one-click trading with no risk for the spread between spot, perpetual and fixed futures futures contracts. for the above trading pairs Bitcoin (BTC), Ethereum (ETH ), Solana (SOL), Avalanche (AVAX), ApeCoin (APE), Dogecoin (DOGE), Chainlink (LINK) and Litecoin (LTC).
According to Paradigm CEO Anand Gomes, the deal is intended to attract investors cryptocurrency interested in leveraging the connection between spot and futures trading on FTX for cash. Gomes adds that the new product rollout could lead to more potential services between the two in the future.
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, $ETHCARD, $SOL, $AVAX, $APE, $DOGE, $LINK and $LTC!https://t.co/O7chj4l09C pic.twitter.com/mbqjpo6qCQ— FTX (@FTX_Official) August 12, 2022
In addition, Paradigm revealed that when users use this arbitrage product, there is less structural risk than doing it on a traditional exchange, which allows the creators to much tighter pricing markets and at significantly larger asset sizes. At the same time, the fee will be 50% less than when making two completely separate transactions.
FTX CEO Sam Bankman-Fried commented:
“Paradigm is the leading network providing institutional liquidity for derivatives products cryptocurrency and we are excited to expand our relationship to co-develop our user products. This structured arbitrage product is the first to allow investors crypto use cash and make transactions through FTX and Paradigm.”
However, it can be affirmed that establishing a successful cooperation relationship with Paradigm once again shows FTX's strong position in the current difficult period. Because Paradigm is one of the largest crypto funds in the industry, having launched a $2.5 billion investment fund in November 2021.
Furthermore Paradigm has more than 1,000 institutional clients including hedge funds, OTCs, lenders, structured product issuers, market makers and family offices with a massive trading volume of approx. 10 billion USD per month.
In related developments, besides the unique product that has just been launched, FTX has also "opened the door" to trade stocks and funds. ETF for all US users in order to further diversify the portfolio of services the exchange provides to users.