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Crypto Derivatives: Overview

January 06, 2026

Cadwalader senior attorney Robyn Llewellyn recently authored a Practice Note on Crypto Derivatives in Thomson Reuters which provides a comprehensive introduction to derivatives referencing digital assets such as cryptocurrencies.

The article explains the principal types of digital asset and crypto asset derivatives, including forwards, futures, options and swaps, and highlights how these products largely parallel traditional derivatives. It also examines the ISDA Digital Asset Derivatives Definitions (DADDs), which provide standardized contract terms for documenting digital asset derivatives transactions.

In addition, the article explores the evolving landscape of digital asset derivatives markets, emphasizing the role of both OTC and exchange-traded derivatives in enhancing liquidity and risk management.

Robyn addresses valuation challenges unique to crypto markets, the significance of disruption events, and the importance of close-out netting and collateral arrangements. The DADDs are presented as a digital-native framework designed to facilitate safe and efficient trading, with a focus on accessibility and usability.

Read the full article here (subscription required).

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