B2C2 and QCP Capital Launch Crypto NDF Market. A crypto non-deliverable forward has been signed between B2C2. The preferred counterparty in the institutional crypto markets, and QCP Capital. A global leader in digital asset trading, according to the two companies’ announcement (NDF). Several months of hard effort at B2C2 have culminated in this bilateral transaction. Which opens the door for traditional financial institutions to enter the expanding cryptocurrency industry for the first time.
Crypto NDFs, which are eagerly expected by both financial market participants and crypto native institutions. Provide synthetic exposure to cryptocurrencies by way of a standardised instrument. That is frequently traded in the foreign currency markets, typically on trading desks for emerging markets. An NDF, in contrast to a deliverable forward, gives exposure. To the underlying asset without the need to take actual delivery of the underlying asset.
The NDF that was completed had a bitcoin as its underlying asset and was denominated in US dollars. The CME CF Bitcoin Reference Rate (BRR) utilized as the reference rate for the crypto derivative. Which had a maturity date of November 19th, 2021. And was based on the CME CF Bitcoin Reference Rate (BRR).
In addition to having the support of its parent business, Japanese financial group SBI. B2C2 is a logical entry point for financial institutions looking. To engage in cryptocurrency trading with a reputable counterparty.
QCP Capital is a crypto options and derivatives pioneer that founded in 2014. Their 60-strong team strategically headquartered in Singapore. Where they are experts in Asian local markets, particularly Southeast Asian markets.
QCP sees NDFs as a method for established banks to access crypto markets
Darius Sit, co-founder of QCP Capital, shared his thoughts on the matter: “QCP sees NDFs. As a method for traditional financial institutions, such as investment banks. To have access to the cryptocurrency markets because they are currently unable to handle the underlying assets. We thrilled to be a part of this groundbreaking offering, which. In conjunction with B2C2, will open up a new crypto derivatives market.”
B2C2’s co-CEO, Phillip Gillespie, said the following. “Crypto NDFs have anticipated by financial institutions looking for a ‘on-ramp’ instrument. That they are familiar with, and we pleased to have completed our first NDF transaction. In our opinion, the introduction of this new cryptocurrency derivative is a watershed point. In bitcoin’s journey from the darkest recesses of the internet to widespread adoption by major financial institutions.”
Sui Chung, the founder and CEO of CF Benchmarks, stated: “In utilizing the liquidity of the CME CF BRR. Industry leaders like as B2C2 and QCP Capital are breaking new ground in the crypto derivatives markets. And we applaud them for doing so. With the addition of B2C2’s crypto NDF. The $5.7 billion BRR liquidity complex, which includes CME futures contracts. ETFs from Evolve and QR Asset, and the WisdomTree Bitcoin ETP, now totals $5.7 billion.”
Furthermore, B2C2 is the counterparty of choice in the institutional cryptocurrency market. B2C2 founded in 2015 and headquartered in the United Kingdom, with operations in the United States and Japan. Aggregators, brokers, exchanges, hedge funds, and OTC desks throughout the world rely on B2C2 to provide 24/7 liquidity. SBI, a Japanese financial group, acquired B2C2 in 2020 for an undisclosed sum. The Financial Conduct Authority of the United Kingdom has authorized and regulated B2C2 OTC Ltd. (FRN 810834).