Deribit launches USDC linear options, widening Circle's stablecoin settlement authority

Deribit launches USDC-priced linear options and fixed futures, reducing volatility risk and enhancing capital efficiency, attracting traditional institutional funds into the crypto derivatives market. (Background: Coinbase will launch tokenized stocks, prediction markets, and IEOs in the US: moving towards a universal exchange) (Additional context: Coinbase integrates Samsung Pay: Buy coins with one-click via Samsung Pay, initially open to users in the US and Canada) Deribit will release USDC-priced BTC and ETH linear options on August 19, simultaneously launching USDC fixed futures and expanding the PAXG product line, symbolizing the move of crypto derivatives towards stablecoin settlements. USDC Settled Linear Options Debut Deribit announced this week the USDC linear options, settling profits and losses priced in US dollar stablecoins, allowing investors to no longer bear the margin fluctuations caused by the underlying asset’s volatility. The minimum contract order size is 0.01 BTC and 0.1 ETH, lowering the trading threshold and potentially attracting small to medium-sized investors to test complex strategies. The USDC fixed futures launched on the same day echo the existing PAXG linear options, forming a stablecoin settlement product group. Deribit emphasizes that the payout curve of linear options is linear to the underlying price, calculated in the same way as dollar options offered by traditional brokers. When the price moves by one dollar, profits and losses are also calculated in one dollar, making the changes straightforward and easy to understand, particularly appealing to institutions familiar with Wall Street styles. Reverse and Linear Dual Axis Strategy At this stage, Deribit has not abandoned reverse options. The reverse structure uses BTC or ETH as collateral and settlement units, suitable for miners holding native coins long-term or investors who prefer to 'hold on' to crypto assets without wanting to exchange currencies. Linear products serve funds emphasizing net dollar exposure that need to account quarterly. The unified margin system incorporates both positions into the same risk control engine, allowing for mutual offsetting after hedging. Capital can flow within the same account, significantly reducing margin rates, enabling investors to deploy complex combinations like straddles and butterflies with less USDC or BTC. To encourage the market to transfer funds into stablecoins, Deribit offers approximately 4% annualized USDC collateral rewards. For hedge funds seeking dollar yields, this mechanism is akin to short-term money market fund interest, further enhancing the incentive to hold USDC. Coinbase's Strategic Puzzle The outside world generally views this launch as an important step for Coinbase to expand its derivatives footprint. USDC is jointly promoted by Coinbase and Circle, long positioned as a key tool bridging fiat and the crypto world. When options and futures are settled in USDC, financial and tax reporting can directly use dollar figures, simplifying internal control processes and reducing compliance pressure. This point is particularly critical for banks and insurance funds that need to explain risk exposures to their boards. Deribit has long ranked first in Bitcoin options positions, and if the US dollar stablecoin product line successfully takes off, its market position can be further solidified. Related Reports BTC, ETH Volatility Warning? What should investors pay attention to as Deribit’s nearly $5 billion options expire on the 8th? What clues are revealed by Deribit options betting Bitcoin will surge to $300,000 by the end of June? Coinbase invests $2.9 billion (hundreds of billions of TWD) to acquire Deribit Options Exchange "Deribit launches USDC linear options, widening Circle's stablecoin settlement authority" This article was first published in BlockTempo (BlockTempo - the most influential blockchain news media).