Crypto Trading Firm B2C2 Launches Crypto’s First Non-Deliverable Forward


B2C2, a crypto liquidity supplier and over-the-counter dealer, stated Wednesday it performed its first transaction of a non-deliverable ahead (NDF) – a sort of monetary contract that’s widespread in foreign-exchange markets – with buying and selling agency QCP Capital.

These sorts of trades may assist conventional monetary establishments to enter the burgeoning cryptocurrency market, in keeping with the press release from London-based B2C2 and Singapore-based QCP.

“Unlike a deliverable forward, an NDF provides exposure to the underlying asset without the need to take physical delivery,” the businesses stated. The underlying asset within the transaction was bitcoin (BTC), denominated in U.S. {dollars}. The dimension of the transaction was not disclosed.

The crypto NDF will present artificial publicity to cryptocurrencies via a standardized instrument that’s extensively traded in international alternate, typically on emerging-markets buying and selling desks, stated the assertion.

“QCP views NDFs as a gateway to crypto markets for traditional financial institutions, such as investment banks, that are currently unable to handle the underlying assets,” Darius Sit, co-founder of QCP Capital, stated within the press launch.

Previously, conventional market members have been in a position to acquire publicity to bitcoin by way of the Grayscale Bitcoin Trust (GBTC) and controlled futures listed on the Chicago Mercantile Exchange. Last month, U.S. regulators accepted a bitcoin futures-based exchange-traded fund (ETF).

NDFs are well-liked in international alternate markets, particularly so for shoppers working in international locations with a non-convertible or partially convertible foreign money just like the Indian rupee. Partial convertibility refers back to the freedom of changing home foreign money into international foreign money and vice versa for restricted functions.

The largest NDF markets are within the Chinese yuan, Indian rupee, South Korean received, New Taiwan greenback and Brazilian actual, in keeping with a report printed by the Bank for International Settlements.