BlockFills launches structured product options for institutions doing crypto
These trades are not offered on “legacy” or decentralized finance (DeFi) exchanges at this time and are considered “over-the-counter” (OTC) in legacy markets.
BlockFills has partnered with TPAC Capital, LLC to offer cryptocurrency structured product solutions to its institutional customer base.
The partnership will make BlockFills one of the few global digital asset electronic trading firms to offer structured product options and will make it available as a solution for institutions.
Banks, hedge funds and others industry participants working with BlockFills will be able to offer structured product solutions for their clients through this partnership.
Customized structured product solutions help institutions manage cryptocurrency exposure and develop solutions that assist with risk-return objectives, return enhancement, cost reduction, crypto pricing volatility and cash flow management.
Maximize crypto investments while hedging or capitalizing on market volatility
Nick Hammer, co-founder and CEO of BlockFills, commented: “Institutions have sought increasingly customizable strategies to help maximize their cryptocurrency investments while hedging against or capitalizing on market volatility. This structured product solution is our answer for these institutions. Combining TPAC’s 40-plus years of experience tailoring such solutions for volatile commodities with our best-in-class electronic trading technology solutions like Vision and Phoenix, institutions now have more customization and control over their cryptocurrency investment strategies.”
Michael Ortiz, Founder of TPAC, said: “This integration with BlockFills will help shape the future of institutional digital asset and crypto trading. Now, with our customizable structured product solutions available, BlockFills clients can structure the right cryptocurrency investment solution that works for them, combining nonlinear and linear options on a case-by-case basis that will benefit their business and investment strategies.”
Structured products are a combination of options (puts and calls) combined into a pre-packaged trade. These trades are not offered on “legacy” or decentralized finance (DeFi) exchanges at this time and are considered “over-the-counter” (OTC) in legacy markets. The pre-packaged trade is negotiated between BlockFills and the prospective institutional client.
The primary benefit of structured product solutions is customization. Specifically, these solutions give institutions the ability to define risk parameters by customizing size, timeframe, desired payout and duration of the trade. Structured products also offer an alternative liquidity source.
The Chicago-headquartered institutional-oriented digital asset platform provides crypto liquidity to more than 800 customers across 50 countries.
As to TPAC, the firm is the cryptocurrency joint venture of commodities specialists Pack Creek Capital, LLC and Finance Michigan, Inc., and is bringing structures and exotic options to the emerging markets of cryptocurrency starting with Bitcoin and Ethereum.