Deribit Accelerates Institutional Access to Crypto Derivatives with New Hybrid Custody Compatibility

The hybrid custody model allows for easier onboarding of institutional custodians and brokerages.

October 29, 2024 – Dubai – Deribit, the leading digital assets derivatives exchange, today announced the launch of support for hybrid custody solutions that allow for quicker onboarding of third-party custodians and brokerages for capital markets traders. At launch, custody firms set to utilize the hybrid model include Fidelity Digital Assets®, Copper Securities, and Zodia, with others set to be onboarded later this year.

Deribit’s support for third-party custody providers is demonstrative of its commitment to providing a secure and trustworthy exchange that allows traders the freedom to choose where their assets are stored – on the exchange or with one of its many partner custodians, some of which use a hybrid model. Deribit’s current third-party custodians are fully integrated with the exchange, allowing traders to leverage all of Deribit’s trading capabilities via an API without the funds ever needing to leave their account. However, these integrations take time, making it harder for institutional traders to access the exchange and giving them fewer options for how to secure collateral. The hybrid custody model solves this problem as custodians are able to offer Deribit as a trading venue without needing full integration, giving traders using Fidelity Digital Assets® and others faster access to the Deribit trading platform.

Deribit CEO Luuk Strijers commented on the news, “At Deribit, we are committed to continually innovating and meeting the evolving needs of our institutional members and make it easier for all to access crypto derivatives markets. Throughout 2024, we have continued to focus on our institutional clients to create a fulsome trading experience in the broader finance ecosystem. Supporting a hybrid custody model marks a significant step forward, providing enhanced flexibility for accessing Deribit’s world-class digital asset derivatives trading offerings. By allowing for a hybrid model with these external custody solutions, we empower our clients while maintaining the seamless trading experience Deribit is known for.”

“Institutional adoption of digital assets is rapidly evolving, and Deribit’s new hybrid custody model is a significant leap forward in that journey. At Galaxy, we recognize the importance of providing institutional investors with the flexibility and security they need to navigate this space confidently,” said Jason Urban, Global Head of Trading at Galaxy. “Deribit’s commitment to integrating with top-tier custodians aligns with our vision of a mature and robust digital asset ecosystem, where innovation and trust are paramount.”

“Derivatives exchanges are an important part of efficient capital markets, and the demand from institutional investors for access to such venues continues to grow. Fidelity Digital Assets® is dedicated to delivering robust infrastructure and liquidity for our clients, and our connectivity to Deribit as they roll out third-party custody is a significant milestone in that journey,” said Luke Cuthill, Director of Business Development at Fidelity Digital Assets®.

In a hybrid model, Deribit traders leveraging a custodian that isn’t integrated with the exchange will have to store a percentage of assets on the exchange to meet collateral requirements, while the rest will be secured by their custodian of choice. Members will need to deposit 20% of their total assets on Deribit by default, but this number is subject to change depending on trading activity, exposure, risk profiles, and market conditions. Daily settlements of profit and loss occur within the Deribit platform.

About Deribit

Deribit is a centralized, institutional-grade crypto derivatives exchange for options and futures trading based in Dubai, United Arab Emirates. Deribit’s state-of-the-art infrastructure offers instantaneous price discovery, low latency trading, advanced risk mitigation services, and deep liquidity via its network of top-tier market makers. Led by a team with decades of experience in options trading across all markets, Deribit facilitates a significant majority of all crypto options trading and has robust proof of assets and liabilities procedures to ensure the exchange is held to the highest of standards. Deribit has been consistently acknowledged as a leader in space as one of few exchanges to secure the ISO 27001 certificate and was named Best Exchange for Innovation by Hedgeweek.

For additional information, visit www.deribit.com.

Media Contact

M Group Strategic Communications (On behalf of Deribit): [email protected].