DRW Holdings LLC stated it would become the first large trading firm to provide over-the-counter bilateral crypto options, according to a report by Bloomberg on Monday.
Cumberland, the Chicago-based firm’s crypto unit, is now a liquidity provider for bespoke options, targeting major crypto holders such as Bitcoin miners and investors that need to hedge risks or earn yields.
Rob Strebel, DRW head of relationship management, stated that they observed the development and the interest in crypto is building.
DRW, a proprietary trading firm was launched by Don Wilson in 1992, is recognized for its derivatives trading in the conventional financial market.
Its crypto division has become one of the biggest traders in cryptocurrencies. It is a major liquidity provider for CME Group Inc.’s Bitcoin futures and, in 2021, unveiled Goldman Sachs Group Inc.’s first-ever crypto block trade.
The market for OTC bilateral cryptocurrency options has been largely dominated by crypto-native companies such as Genesis Global Trading Inc and Galaxy Digital Holdings Ltd. BTC USD up +1.75%