QCP Capital, SBI Alpha Execute First Uncleared Crypto Options Trade Using Bitcoin (BTC) as Collateral

The trading parties collected the collateral at the start of the transaction and locked the same in an account at an independent custodian, which was controlled by all three parties to mitigate the counterparty risk stemming from the absence of a clearing house. All exchange-traded derivatives and most over-the-counter derivatives involve a clearing house that validates and finalizes the transaction, ensuring the parties to the trade honor their contractual obligations.