Key facts:
The Discreet Log Contract protocol, from DLC Markets, allows you to operate without counterparty risks.
The DLC Market test phase gave key information for the transition to the official version.
On Thursday, September 26, DLC Markets announced the completion of its transition to the Bitcoin network, marking “a significant advancement in non-custodial trading for bitcoin-based financial products.”
This transition follows the introduction in the first quarter of 2024 of a beta version of its platformwhich, according to the company, demonstrated the viability of its “innovative institutional-grade bilateral bitcoin derivatives trading platform.”
At the core of DLC Markets is the Discreet Log Contract (DLC) protocol, a technology that allows trading without counterparty risks, according to them. This protocol uses the Bitcoin network not only as a base of operations, but also as a collateral custodian, ensuring that settlement calculations are based solely on independent Oracle publications.
The DLC Markets platform combines the strength of traditional finance with the innovations of Bitcoin technologysays the entity. The latter, “offering a more efficient, secure and flexible environment for institutions.”
Among the advantages identified are the elimination of counterparty risk, the ability to customize financial products to measure and optimized treasury management for native Bitcoin companies. Additionally, it allows for streamlined onboarding with a simple connection of Bitcoin wallets, facilitating regulatory compliance and maintaining the privacy of business transactions.
The beta phase of DLC Markets reportedly provided “invaluable insights from various Bitcoin institutions,” which guided the refinement of the platform. With the transition to mainnet of Bitcoin, the platform implemented improvements, including optimized transaction handling, more flexible collateral options, and the ability to settle in multiple currencies.
The importance of the BTC derivatives and options markets cannot be underestimated in the current context. These financial tools have been a crucial catalyst in recent monthswith a notable impact on volatility and institutional interest in the cryptocurrency market. Today, as reported by CriptoNoticias, 89,000 bitcoin options expired, underscoring the relevance of these financial instruments today.
DLC Markets’ transition to the Bitcoin network, with an ability to handle derivatives and options directly on the Bitcoin blockchainaligns with the growing demand for decentralized and efficient financial solutions. This move not only improves the efficiency and security of trading bitcoin-based derivatives, but also opens new avenues for financial innovation in the cryptocurrency space.
This article was created using artificial intelligence and edited by a human Editor.