A $200 options trade on Bitcoin blockchain may be 1st step in replacing Wall Street

posted 10 days ago
A Bitcoin options trade (0.0202 Bitcoin ~$217 at the time) was successfully completed and it was paid via smart contract. Using Bitcoin saved time (normally 1 to 2 days) and money (only $1.50 in transaction fees) in handling the S&P 500 options trade. A French crypto analytics CEO (and former Wall Street options trader for JP Morgan Chase) took British pounds and converted those into Bitcoin, and used the BTC to buy 10 S&P 500 call spreads – a popular type of option – from Crypto Garage, all under a new smart contract, with terms agreed to by both counterparties in minutes. The expiration date for the options was set for the third Friday of the month, similar to the standard practice on many exchanges.

The option premium of 0.0202 bitcoin ($217 at the time) was paid out via the smart contract, and Crypto Garage posted 0.04667 bitcoin as collateral. On the expiration date, the smart contract automatically used a price feed from Atlanta-based ICE (parent company of the NYSE) to establish the final price for the S&P 500. The trade went in the French CEO’s favor, resulting in a payout of 0.036 bitcoin ($365 at the time). Crypto Garage got 0.01 Bitcoin of its collateral back. The little $217 options trade might be a step forward in making financial markets cheaper and faster to use – with less Wall Street involvement.
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