Skip to main content

Give an Example of a Crypto Interest Rate Swap.

A crypto interest rate swap could involve one party agreeing to pay a fixed interest rate on a notional amount of Bitcoin, while the counterparty pays a floating interest rate based on a crypto lending index. The principal is usually not exchanged.

This is used to manage exposure to variable crypto lending rates.

How Is the Interest Rate of a Floating-Rate Smart Bond Determined and Updated by the Contract?
How Does the Settlement Process for a Crypto Futures Contract Differ from a Traditional Commodity Future?
What Is the Typical Frequency of Funding Rate Payments on Major Crypto Exchanges?
What Is the Typical Frequency for Funding Rate Payments in Perpetual Swap Markets?