Talos, a technology provider for institutional trading of digital assets, has partnered with Coinbase Derivatives to expand the avenues available for investors seeking to invest in cryptocurrency within a regulated framework. This collaboration enables investors to access a regulated futures exchange offering Bitcoin and ether futures contracts.

Exploring Institutional Crypto Derivatives

According to the press release, these contracts, sized at 1 Bitcoin and 10 ether, cater specifically to the needs of institutional investors. They provide a tool for managing exposure to the crypto market without the complexities of direct asset custody.

Daniel Packham, the VP and Head of Operations for EMEA at Talos, mentioned: "The derivatives markets are a significant component of the digital assets ecosystem for institutions who seek secure, liquid, and increasingly regulated venues for trading. We have seen a lot of interest and growth in our derivatives business, and our integration with Coinbase Derivatives will expand the universe of regulated futures that clients can access using the Talos platform."

Talos and @Coinbase Derivatives open a new avenue for institutional crypto derivatives trading.

➡️ https://t.co/0IKHq58L4A

Our integration will expand the universe of regulated futures that clients can access using the Talos platform.

#CryptoTrading #DigitalAssets pic.twitter.com/NZpHf2PV7e

— Talos (@talostrading) April 2, 2024

Coinbase Derivatives offers nano-sized contracts tailored for retail investors to allow for more accessible participation in crypto derivatives trading. Talos' clients can leverage the liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term of Coinbase Derivatives' futures contracts through algorithms, including Talos' Multileg algorithm, which facilitates the implementation of trading strategies.

Talos provides the technology supporting digital assets for institutional investors, such as liquidity sourcing, settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term, and portfolio management. The firm connects institutions to key participants in the digital asset space.

Last year, Coinbase Derivatives introduced Bitcoin and ether futures contracts. These futures are accessible through third-party institutional Futures Commission Merchants and brokers. The initiative signified the efforts by Coinbase to meet the growing demand for crypto futures among investors.

Fulfilling Institutional Demands

Futures contracts enable investors to secure positions for buying or selling assets at predetermined prices in the future. This offering provides a structured approach to risk management and speculation in the crypto market. Coinbase's foray into derivatives followed its launch of a global cryptocurrency derivatives exchange, which caters to institutional clients outside the US.

However, regulatory hurdles presented significant challenges, including a Wells Notice from the Securities and Exchange Commission. The notice accused Coinbase of offering unregistered securities, highlighting the regulatory uncertainties surrounding the crypto industry in the US.