Blockchain.com launches crypto options as it seeks US licenses

Blockchain.com launched short-dated crypto options for eligible users on Oct. 20, adding calls and puts on seven cryptocurrencies as it pursues US derivatives registrations. The product is available only in supported jurisdictions; US residents are currently excluded, according to the company’s support documentation. The Block’s report on the launch says contracts are funded upfront in USDC and have expiries of up to one week.

How does Blockchain.com turn a price view into an option?

Users choose an expiry date and target price, enter a trade amount and review the proposed trade before confirming. Blockchain.com selects the corresponding call or put, according to the company’s launch announcement. A call pays according to how far the settlement price finishes above its strike; a put pays according to how far it finishes below. The target price is used to find the closest available strike that could produce a positive profit at expiry, the company’s options FAQ says.

At launch, users can buy options on bitcoin, ether, Solana, Hyperliquid’s HYPE, Avalanche, XRP and TRON. The minimum premium is $5, plus applicable fees, and purchases are funded in USDC from a Blockchain.com Trading Account. The premium and upfront fee set the maximum loss. The buyer cannot lose more than that amount through the option, but can lose all of it if the contract expires worthless.

What happens after purchase?

The position is locked through expiry. Users cannot sell or close it early, and cannot change its strike price or expiry after purchase. The date and time shown before confirmation determine when the contract expires. If the option expires without a payout, the buyer loses the premium and upfront fee. If it pays out, the settlement amount is credited to the Trading Account, normally in USDC. A payout can still leave the buyer with an overall loss if it is smaller than the purchase cost.

The structure gives the buyer a defined maximum loss, but the inability to exit early also removes the option to respond to a changed market view by closing the position. Options are initially available with expiries of up to one week. Availability depends on location and account eligibility; Blockchain.com’s FAQ lists the United States and United Kingdom among excluded locations.

What do the US license applications cover?

The options rollout follows Blockchain.com’s Oct. 13 announcement that it had applied to the Commodity Futures Trading Commission for registration as a Futures Commission Merchant and designation as a Designated Contract Market. The company said approval could let it offer regulated crypto derivatives, including futures and options, as well as prediction market contracts to US retail and institutional customers. The filings are applications, not approvals, and the new options product is not currently available to US residents.

Blockchain.com said it introduced perpetual futures and prediction-market offerings for users in eligible markets earlier this year. The options launch adds a separate contract type: buyers pay upfront for exposure to price direction by a fixed expiry, while perpetual futures do not have a set expiration date. The company has not said that the new options product itself will be the product offered in the US if its applications are approved.

Sources and documents

• The Block’s report on the launch — theblock.co
• options FAQ — support.blockchain.com