Deribit Shakes Up Crypto Markets with USDC-Settled Bitcoin and Ether Options Launch

Deribit just dropped a bombshell—USDC-settled Bitcoin and Ether options are coming. Traders, grab your popcorn.

Why this matters: Stablecoin settlement slashes volatility headaches while keeping crypto's upside. Finally, a hedge that doesn’t require praying to the volatility gods.

The fine print: No more messy BTC/ETH payouts—just cold, hard USDC. Because nothing says 'mature market' like pretending crypto isn’t crypto.

Cynic’s corner: Wall Street’s still calling it a 'risk asset' while quietly stacking options. Some things never change.

Why USDC Settlement Matters

Linear options differ from inverse contracts because payouts MOVE directly with the asset price and settle in a fiat-equivalent stablecoin. Hence, traders avoid the volatility of holding the underlying coin for settlement. Moreover, the design mirrors traditional cash-settled options, which can simplify onboarding and reporting for institutions.

Deribit has also made things easier by lowering the minimum order sizes to 0.01 BTC and 0.1 ETH, which helps more people access their products. Linear and inverse books enable opening up new avenues for hedging and arbitrage in basis and skew trades. Institutions stand to benefit most as it allows them to operate with more accuracy without the need for constant rebalancing.

Building on Previous Success

Deribit initially offered USDC-settled linear options in 2023 on cryptocurrencies such as Paxos Gold, XRP, and Solana. Despite the later discontinuation of Polygon’s MATIC choices, demand for USDC-based instruments remained steady. This strategy is expanded to higher-volume assets with the new Bitcoin and ethereum offers.

Founded in 2016, Deribit remains the largest crypto options exchange by trading volume and open interest. Last month, it hit $185 billion in volume, marking its best month ever. The $2.9 billion Coinbase acquisition, which was completed last week, gives its international development even more impetus.

The launch puts Deribit in a strong position in the derivatives market. Enabling USDC settlement for BTC and ETH brings crypto trading closer to the efficiencies of traditional finance and serves the interests of active traders and large institutions.

Also Read: SharpLink Expands ETH Treasury Amid Strategic Overhaul