This feature allows users to benefit from the future prices of cryptocurrencies by making trades using USDC.
Singapore – based crypto exchange Bybit recently announced the expansion of its crypto options trading services, allowing users to trade options and perpetual contracts against USD Coin (USDC) .
Bybit’s media team said the decision to add options to the product line was in response to community demands. Bybit noted that investors want to trade options because it can “serve as a hedge against existing risks and provide greater market exposure.” It also gives traders the opportunity to diversify their portfolios.
The newly launched crypto options contracts on the exchange operate on the same principles as their traditional financial counterparts. They allow users to speculate on the future price of an asset in US dollars and settle trades using the USDC stablecoin. The Bybit team noted that “option contracts are rights, not obligations, so they will expire without a transaction if the option is not exercised.”
While options are aimed at experienced traders such as institutional clients and market makers, Bybit also believes they can drive adoption among traditional financial traders.
“Expanding the range of products and services denominated in cryptocurrencies helps investors who are more familiar with traditional money,” the message says.
While the service allows Bybit users who have completed the Know Your Customer (KYC) process to trade options, the platform has excluded some jurisdictions, including the US, mainland China, Singapore, Quebec, Canada, and North Korea.
In March, foreign exchange firm CME Group announced plans to introduce micro-sized options on Bitcoin (BTC) and Ethereum (ETH). Even before the end of the month, the group issued option contracts on existing microBTC and microETH futures.
As cryptocurrency investments become more regulated, more organizations are looking to enter the market. NEAR Foundation CEO Marieke Flaman said that institutional players are “very eager” to understand how they can try to participate and enter the crypto ecosystem.