Blockchain.com launches crypto options: how they work

Blockchain.com has added options trading to its app, letting eligible users buy call and put options on bitcoin and six other coins with expiries of up to one week. The company announced the launch on Oct. 20 in a press release, and its support pages spell out the rules. Here is what the product does and what it does not.

What you can trade

At launch the menu covers BTC, ETH, SOL, HYPE, AVAX, XRP and TRX. Only buying is offered: users can buy calls (a bet that the price finishes above a level) or puts (a bet that it finishes below), but cannot write or sell options to others. Expiries run up to one week.

How a trade works

Instead of choosing from a grid of strikes, the user picks:

• an expiry date;
• a target price they expect the coin to reach;
• an amount to put in.

Blockchain.com then picks the option with the closest available strike that would be in profit if the target is hit. Trades are funded upfront in USDC from the Trading Account, the minimum premium is $5 plus fees, and a quote stays valid for 30 seconds, according to the support center.

The rules that matter

• Loss is capped. The most you can lose is the premium and the upfront fee. There is no margin and no liquidation.
• No early exit. Options must be held until expiry; they cannot be sold, closed or changed.
• Two fees. A premium fee on purchase and a settlement fee that applies only if the gross payout exceeds the premium paid. A payout can still leave you with a net loss after fees.
• Payouts in USDC are credited automatically to the Trading Account.

Who can use it

Eligibility is limited. Blockchain.com's FAQ lists residents of the US, UK, France, Germany, Spain, Italy, the Netherlands, Malta, Canada, Japan, Ukraine and Russia, among others, as not eligible. Using a VPN to get around the restriction is not allowed.

Why Blockchain.com is doing this

The launch follows the company's move into perpetual futures earlier this year, and The Block notes that Blockchain.com recently applied for US licenses to offer prediction markets and crypto derivatives. Simplified, retail-friendly options are a growing niche: US regulators have also cleared binary options tied to Coinbase and Robinhood metrics.

"We take care of the complexity in the background," said Taro Ugen, Blockchain.com's VP of Consumer.