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Published: just now

November 10, 2021 - Institutional crypto market-maker B2C2 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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