360T Joins the Crypto NDF Fray

Competition in crypto NDFs just intensified, with Deutsche Börse’s 360T saying it has facilitated its first crypto NDF trade on the platform between Wintermute Asia and Crypto Finance. Previously 24 Exchange has executed crypto NDF trades on its platform.

360T says it is initially supporting access to crypto NDFs on bitcoin (BTC) and ethereum (ETH), leveraging existing OTC FX workflows to help streamline the adoption of these new products by its client base. By trading crypto NDFs, 360T says those clients can gain exposure to the underlying cryptocurrencies without having to handle the underlying assets. These products can enable firms to hedge existing crypto exposures on a regulated platform, it adds.

“We are very pleased to have supported the first bitcoin NDF trade on our platform, offering a proven, reliable and safe platform to facilitate crypto NDF products alongside OTC and listed FX, short-term money market products, and commodities,” says Sebastian Hofmann-Werther, head of EMEA at 360T.

“By launching our crypto offering with non-deliverable derivatives products, we are allowing our diverse, global client base to engage with the crypto market without the need to build or invest in distributed ledger technology (DLT) infrastructure. Looking ahead, we will continue to work with our industry partners to expand 360T’s crypto offering in-line with their needs,” adds Ralph Achkar, head of digital currency strategy at 360T.

The push for crypto NDFs has been slower than might have been expected, perhaps due to the ‘crypto winter’ in 2022, as it is now two years since 24 Exchange announced its first trade. With more interest in crypto generally as prices rebound from 2022/23 lows, more NDF trading is seen as an ideal gatweay to the nascent asset class for TradFi participants, a piint made by Evgeny Gaevoy, CEO and co-founder of Wintermute Group. “Traditional financial institutions increasingly seek exposure to cryptocurrencies, and NDFs offer a safe gateway to crypto for these entities,” he says. “We’re pleased to see an experienced and established technology provider like 360T addressing institutional investor demands and look forward to increasing our participation on the platform.”

Stijn Vander Straeten, CEO of Crypto Finance Group, emphasises the role of regulated trading platforms in encouraging greater institutional participation in the crypto space. “We strongly believe that the crypto space has attracted significant attention from institutional investors, and the emergence of regulated trading platforms will catalyse increased engagement from these entities,” he asserts. “As pioneers in this space, we are proud to have paved the way for this development and look forward to working with 360T as it develops and expands its crypto offering.”