Derive Integrates With BitGo for Regulated Institutional Onchain Derivatives Trading

• BitGo and Derive have launched an integration enabling eligible institutional clients to trade onchain options and perpetual futures while keeping collateral within BitGo.
• The partnership utilizes an architectural separation of custody and execution to address institutional concerns regarding smart contract counterparty risk.
• Derive operates a high-performance protocol built on the OP Stack, supporting major assets with cumulative notional volume exceeding $30 billion.
• BitGo holds an unconditional OCC national trust charter, providing a regulatory layer that bridges traditional finance and decentralized derivatives markets.

Derive, formerly known as Lyra, has partnered with BitGo to allow institutional clients to trade derivatives onchain while maintaining collateral within BitGo Bank & Trust, an OCC-regulated national trust bank. This integration addresses a critical barrier to institutional adoption in the crypto derivatives space: the reluctance to expose collateral to smart contract counterparty risk. By ensuring client funds never leave the regulated perimeter, the solution eliminates asset commingling and offers a structural safeguard essential for institutional compliance departments.

How Does the Integration Mitigate Counterparty Risk?

The solution relies on an architectural separation of custody and execution to mitigate risk. Trade execution occurs on Derive’s protocol, which is built on Ethereum and the OP Stack, while custody remains with BitGo’s regulated banking entity. This structure ensures that assets participate in derivatives markets without leaving the regulated environment, addressing volatility concerns heightened by market events in 2022. Such structural safeguards are critical for institutions evaluating crypto exposure, offering a credibility layer that crypto-native custody solutions often lack.

BitGo received unconditional OCC approval for its national trust charter in December 2025, extending its institutional-grade custody strategy to derivatives markets. The integration enables eligible institutional clients to trade options and perpetual futures on Derive’s platform while maintaining collateral within BitGo Bank & Trust. This partnership positions BitGo to compete effectively in the institutional market by providing a regulated environment for onchain trading.

What Is Derive's Market Position and Performance?

Derive operates a high-performance derivatives protocol designed to deliver centralized exchange-like speed for onchain trading. The platform supports options and perpetual futures on major assets like Bitcoin and Ethereum, with cumulative notional volume exceeding $30 billion. The protocol is built on the OP Stack, leveraging Layer 2 scalability to support high-frequency trading requirements.

The integration allows institutional clients to access Derive’s liquidity and execution capabilities while maintaining custody with a regulated entity. This approach addresses the trade-off between decentralized execution and institutional compliance requirements. Derive’s focus on high-performance infrastructure positions it to capture market share from traditional centralized exchanges in the onchain derivatives sector.