B2C2 claims the crypto market’s first undeliverable futures contract

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B2C2, the market maker owned by SBI Financial Services, says it executed the crypto industry’s first undeliverable futures (NDF) this morning with trading firm QCP Capital, according to a statement.

The amount of the transaction was not disclosed.

B2C2 said NDFs provide a familiar route for institutions to gain exposure to crypto, without having to take ownership of it. The instruments are standardized and traded on the foreign exchange markets.

Bitcoin was used as the underlying asset in the transaction, which was denominated in US dollars.

“QCP views NDFs as a gateway to the crypto markets for traditional financial institutions, such as investment banks, which are currently unable to manage the underlying assets,” said Darius Sit, co-founder of QCP Capital, specialized in options and derivatives.

The CME CF Bitcoin Reference Rate (BRR) was used as the reference rate used for the derivative, which has an expiration date of November 19, 2021.

Founded in 2015 with its headquarters in the UK, B2C2 helps a range of crypto services and investment firms access liquidity. It was acquired by Japanese financial conglomerate SBI in December 2020 for an undisclosed amount.

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