Deribit Sees Strong Demand From Institutions, Volume on Its Block RFQ Tool Reaches $23B in Four Months

The institutionalization of cryptocurrencies is accelerating rapidly.

Crypto derivatives exchange Deribit's on-demand liquidity tool, the Deribit Block Request-for-Quote (RFQ) interface, has registered a cumulative trading volume of over $23 billion in less than four months since its debut in early March.

Deribit is a prominent derivatives exchange, offering the world's largest options market for traders of bitcoin BTC$90,538.84, ether ETH$3,127.18, Solana SOL$133.29, and XRP XRP$2.0635. It also offers futures and spot trading.

The exchange introduced the block RFQ system in March, where participants (takers), typically institutions and high-volume traders, request pricing for a structure – a single instrument trade or a multi-legged strategy involving spot, futures, or options. A block trade is a large transaction.

Market makers, entities tasked with providing liquidity, then respond with either single or double-sided quotes, following which the best quote for the bid and the ask are displayed to the taker. The best quote for the bid and the best quote for the ask is then displayed to the taker, who can trade by crossing against either the bid or the ask.

The system allows large traders to execute orders more efficiently outside of public order book systems, ensuring minimal impact on market prices.

Imagine buying vegetables in large quantities directly from a farm (OTC) and receiving a better price and more flexible terms rather than bidding in a crowded market where a large order can significantly raise prices.

"The RFQ system allows for multi-leg trades, multiple maker quotes, and greater price efficiency—improving execution for large OTC trades while minimizing adverse selection. It reflects strong institutional demand and Deribit’s continued focus on liquidity and trade quality," Deribit's CEO Luuk Strijers told CoinDesk.

Strijers noted that the system targets the needs of professional and agency trading operations, such as support for complex structures and large volumes.

"Block RFQ lets multiple liquidity providers compete on partial quotes and makers benefit from reduced adverse selection, allowing tighter quotes, while takers enjoy price improvements and anonymity options," Strijers noted.

The RFQ system handled trades worth $883 million in March, with the activity booming to $6.3 billion in April. The momentum continued in May, with the tally reaching $9.8 billion and exceeding $6 billion in just the first half of June.

If that's not enough, the percentage of block trades executed via Deribit's RFQ has increased to 27.5% this month, up from 17% in April and 21% in May.