Crypto derivatives should be banks’ ‘gateway drug’ to spot: B2C2

Cash-settled crypto derivatives should not be the end goal for banks, according to one of the founders of crypto market-maker B2C2; rather they should be a “gateway drug” to trade the physical product, for which liquidity conditions have improved significantly.

Banks including Goldman Sachs and Nomura have been among the traditional finance world’s first movers in trading bitcoin futures and non-deliverable forwards, while several other futures commission merchants (FCMs) have offered clearing