Deribit Mulls Expansion Into Asset-Backed Crypto Products

Crypto derivatives exchange Deribit plans to expand into asset-backed crypto products, starting with support for Pax Gold (PAXG), a gold-backed token by Paxos, with physical gold vaulted in London, Benzinga reported Tuesday. In an interview with the investing website, Deribit's Chief Risk Officer and Head of Product Strategy Shaun Fernando said that PAXG trading on Deribit surpassed $250 million in notional value within its first week, reflecting strong trader interest. Last Monday, Deribit added support for the PAXG, a token backed 1:1 by a fine troy ounce of LMBA good delivery gold. PAXG, an ERC-20 token, mitigates inflation risks, providing a stable collateral asset with cost advantages over traditional gold exchange-traded funds, or ETFs, said Fernando. Last month, Deribit introduced Hashnote-issued US Yield Coin (USYC) as a new yield-bearing cross-margin collateral option.