Paradigm and FTX Team Up To Launch Crypto Futures Spread Trading

Deal to allow “cash-and-carry” trades follows liquidity platform’s integrations with Bybit and Deribit in February


FTX’s Sam Bankman-Fried | Blockworks exclusive art by axel rangel


key takeaways

  • Partnership will help investors better “take advantage of pricing dislocations,” Paradigm co-founder says
  • Spread trades through the deal will be available on BTC, ETH, SOL, AVAX, APE, DOGE, LINK and LTC

Liquidity platform Paradigm has partnered with crypto exchange FTX to launch spread trading, allowing users to take advantage of pricing dislocations with “cash-and-carry” plays.

Spread trades involve buying one security and selling another related security — such as a futures contract — to produce an overall net trade with a positive value called the spread. 

A so-called cash-and-carry trade exploits variances in market prices and could entail taking a long position in an asset while simultaneously selling the associated derivative.

Paradigm users will be able to trade the spread between spot, perpetuals and futures instruments through FTX on bitcoin, ether, solana, avalanche, apecoin, dogecoin, chainlink, and litecoin, the companies revealed Friday.  

FTX is the third exchange to partner with Paradigm (not to be confused with the crypto investment firm of the same name) on futures spreads. Paradigm is integrated with Bybit and Deribit and started offering futures spreads cleared through those exchanges in February.

“Having more exchanges means Paradigm users have alternative venues to clear and custody assets, as well as take advantage of pricing dislocations,” Paradigm co-founder Micki Koonin told Blockworks in an email. “This is especially attractive when it is one of the largest global exchanges, like FTX.”

FTX is the first exchange through which Paradigm can offer spot trade as part of the spread — such as spot versus future trades — as well as perpetual and future combinations, Koonin added. The exchange also allows trading of futures spreads on more coins, such as APE and DOGE. 

Spread trading on Paradigm has guaranteed atomic execution of both legs, the company said. Spreads executed on Paradigm and cleared on FTX will be charged half the fees compared to executing two individual trades. 

FTX CEO Sam Bankman-Fried and Paradigm CEO Anand Gomes said in statements that the firms plan to work together on future products.

Paradigm has more than 1,000 institutional clients — such as hedge funds, over-the-counter desks, lends, structured product issuers, market makers and family offices — trading roughly $10 billion per month.

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.


Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research



Aerodrome is a "MetaDEX" that combines elements of various DEX primitives such as Uniswap V2 and V3, Curve, Convex, and Votium. Since its launch on Base, it has become the largest protocol by TVL with more than $495M in value locked, doubling Uniswap's Base deployment.


Scientific reputation should be determined by a decentralized community of scientists, not the validation of higher institutions


Paxos is getting off scot-free after the SEC said it wouldn’t pursue legal action against the company


The Srcful partnership is part of a broader plan to onboard Helium “subnetworks”


Plus, a look into US spot BTC funds six months into trading


A Swedish energy-focused project named Srcful proposed to become a Helium subnetwork with its own ENERGY token


Securitize CEO Carlos Domingo thinks BUIDL will potentially hit its next $500 million milestone in just a few months