LONDON and SINGAPORE, November 10th 2021 - B2C2, the counterparty of choice in the institutional crypto markets, and QCP Capital, a market leader in digital asset trading, today announced they have executed a crypto non-deliverable forward (NDF). The bilateral transaction is the culmination of many months of work at B2C2, and paves the way for traditional financial institutions to enter the burgeoning cryptocurrency market.
Keenly awaited by financial market and crypto native institutions alike, a crypto NDF provides synthetic exposure to cryptocurrencies through a standardised instrument that is widely traded in the foreign exchange market - typically on emerging market trading desks. Unlike a deliverable forward, an NDF provides exposure to the underlying asset without the need to take physical delivery.
The executed NDF had a bitcoin underlying and was denominated in US dollars. The reference rate used for the crypto derivative was the CME CF Bitcoin Reference Rate (BRR), with a maturity date of November 19th 2021.
B2C2, with the backing of parent company Japanese financial group SBI, represents a natural entry point for financial institutions seeking to trade crypto with a reliable counterparty.
QCP Capital is a pioneer in crypto options and derivatives. Specialists in Asian local markets, particularly Southeast Asia, their 60-strong team is strategically based in Singapore.
Darius Sit, co-founder of QCP Capital, said: “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. We are delighted to participate in this innovative product alongside B2C2, opening up a new crypto derivatives market."
Phillip Gillespie, co-CEO of B2C2, said: “Crypto NDFs have been long-awaited by institutions seeking an ‘on-ramp’ instrument they are familiar with, and we’re proud to have executed our first NDF. We believe this new crypto derivative marks a watershed moment in bitcoin’s journey from the corners of the internet to acceptance by mainstream financial institutions.”
Sui Chung, CEO of CF Benchmarks, said: “We are delighted to see market leaders like B2C2 and QCP Capital break new ground for crypto derivatives markets by harnessing the liquidity of the CME CF BRR. B2C2’s crypto NDF joins the $5.7bn BRR liquidity complex comprised of CME futures contracts, ETFs from Evolve and QR Asset, and the WisdomTree Bitcoin ETP.”
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B2C2 is the counterparty of choice in the institutional crypto market. Founded in 2015 and headquartered in the UK, with offices in the US and Japan, B2C2 is relied on by aggregators, brokers, exchanges, hedge funds and OTC desks globally to provide 24/7 liquidity. In 2020, B2C2 was acquired by Japanese financial group SBI. B2C2 OTC Ltd. is authorised and regulated by the UK’s Financial Conduct Authority (FRN 810834). For more information, please visit https://www.b2c2.com
About QCP Capital
Founded in 2017, QCP Capital is a market leader in digital asset trading. Pioneers in crypto options and derivatives, the firm currently runs a $2 billion global book. Specialists in Asian local markets, particularly Southeast Asia, the firm has a 60-strong team strategically based in Singapore. For more information, please visit https://qcp.capital/
About CF Benchmarks
CF Benchmarks (CFB) is a UK FCA regulated Benchmark Administrator. It provides cryptocurrency indices and benchmarks under the Benchmarks Regime allowing regulated financial institutions to offer regulated investment and financial products that reference cryptocurrencies. There are currently regulated futures contracts, ETFs, ETPs, OTC derivatives and loans priced and valued using CFB indices from leading institutions globally. CFB counts CME Group, Nasdaq, WisdomTree, ProFunds, Evolve ETFs and B2C2 amongst its licensees and partners.
Head of Marketing and Communications
B2C2 is the crypto-native liquidity provider across market conditions. 450+ institutions globally, including agency OTC desks, aggregators, banks, exchanges, FX brokers and hedge funds, rely on B2C2’s full service offering for 24/7 access to the crypto market.
Since it was founded in 2015, B2C2 built its technology, products and services to meet the evolving needs of diverse institutions. Continuously innovative, B2C2 is trusted by clients to find solutions to industry challenges, such as creating the first crypto ISDA Master Agreement in 2018.
Acquired by Japanese financial group SBI in 2020, B2C2 remains a standalone company, headquartered in the UK, with offices in the US and Japan. B2C2 OTC Ltd. is authorised and regulated by the UK’s Financial Conduct Authority (FRN 810834). For more information, please visit https://www.b2c2.com