Why Crypto Needs a Multi-Dealer Derivatives Platform
In traditional finance, the evolution of derivatives trading has been shaped by a clear demand for neutrality, transparency, and competitive pricing. Post-Dodd Frank and MiFID II, regulators pushed for multi-dealer platforms to prevent conflicts of interest and encourage fairer markets. Crypto, by contrast, remains stuck in a pre-regulated era—where bilateral agreements, opaque pricing, and self-interested intermediaries dominate the OTC derivatives space.
At CoinMatch, we believe this structure is no longer fit for purpose.
The Problem: Fragmentation and Informational Asymmetry
Most OTC crypto derivatives trades today are negotiated via chat, locked into bilateral relationships, and governed by bespoke legal agreements that heavily favor the dealer. Market makers often act as calculating agents in their own trades—something that would raise red flags in TradFi. These setups might work for the dealer, but they systematically disadvantage the buy-side. Buy-side participants—from hedge funds to DAOs to treasuries—are often flying blind. Without visibility into broader market pricing or access to real-time competition, they're forced to trust that the quotes they receive are fair. Too often, they're not.
The Case for Multi-Dealer Infrastructure
A multi-dealer platform levels the playing field. It allows a price taker to submit a single RFQ (Request for Quote) to multiple dealers, receive competing bids, and choose the best one. This drives price discovery, fosters transparency, and empowers the client—not just the liquidity provider. This model has already transformed fixed income and FX markets. Crypto is overdue for the same.
What's Different About CoinMatch
CoinMatch is purpose-built for this moment. We're not a counterparty. We don't take proprietary risk. We're a technology provider focused on infrastructure. By combining a multi-dealer RFQ engine with a Generalized Margin Engine and (soon) Prime Broker facilitation, we bring scale and efficiency to a market currently defined by fragmentation.
The benefits are clear: tighter pricing, better execution, and lower operational friction for all participants.
The crypto derivatives market is maturing. It's time the infrastructure did too.
In traditional finance, the evolution of derivatives trading has been shaped by a clear demand for neutrality, transparency, and competitive pricing. Post-Dodd Frank and MiFID II, regulators pushed for multi-dealer platforms to prevent conflicts of interest and encourage fairer markets. Crypto, by contrast, remains stuck in a pre-regulated era—where bilateral agreements, opaque pricing, and self-interested intermediaries dominate the OTC derivatives space.
At CoinMatch, we believe this structure is no longer fit for purpose.