Crypto.com US exchange lists 4 memecoin derivatives.
Crypto.com's North American derivatives exchange lists derivatives related to memecoins, including Nadex, PEPE and FLOKI.
Nadex lists derivatives linked to Dogelon Mars (ELON) and BONK.
According to CoinMarketCap, the total market capitalization of the four memecoins under Nadex contracts is close to $7 billion.
The contracts will add to Nadex's existing portfolio of cryptocurrency derivatives, including contracts tied to blockchain network tokens such as Bitcoin (BTC) and Ether (ETH).
Nadex memecoin contracts. Source: CFTC
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Contracts called “touch brackets” are hedging instruments designed to pay out if a token's spot price hits an agreed ceiling or floor before the contract expires.
“Touch bracket contracts are not only very popular in high-volatility markets like cryptocurrency markets, but due to their unique structure, they reduce the chance of contract fraud,” Nadex explained.
Crypto derivatives are expanding on regulated US exchanges, including established trading platforms such as the Chicago Mercantile Exchange (CME).
In September, the US Securities and Exchange Commission (SEC) allowed Nasdaq to list options related to BlackRock's BTC exchange-traded fund (ETF), the iShares Bitcoin Trust (IBIT).
The options are pending final approval from other agencies, including the CFTC.
In 2023, combined trading volumes of Nadex contracts associated with BTC, ETH and Litecoin (LTC) exceeded 28 million contracts.
“Therefore, the exchange continues to expand its crypto commodity derivative product offerings to meet public demand for diversified and regulated products,” Nadex said.
Derivatives exchanges such as Nadex self-certify derivatives they believe comply with current regulations. Deals do not require express regulatory approval before listing.
On October 7, Kalshi, derivatives, listed event terms for betting on US election results after winning a landmark court battle with the CFTC in September.
On October 8, Kalshi added another political event contract to his roster, allowing traders to bet on whether New York City Mayor Eric Adams would resign after being indicted on bribery charges in September.
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