DerivaDEX, a decentralized derivatives exchange, has officially launched its trading platform after receiving regulatory approval from the Bermuda Monetary Authority. This marks a significant industry milestone as it becomes the first DAO-governed decentralized exchange (DEX) to operate with a regulatory license from a respected financial regulator.
The platform commenced trading of crypto perpetual swaps, offering performance comparable to centralized exchanges while maintaining the core benefits of decentralization. According to the announcement, DerivaDEX achieves sub-5 millisecond order acknowledgment latency, fast deposits and withdrawals to Ethereum, and real-time price feeds. It also incorporates front-running resistance through encrypted order handling and trusted execution environments.
"Today's DerivaDEX launch marks a milestone in the relationship between traditional finance and decentralized trading," said Aditya Palepu, Founder of DerivaDEX developer DEXLabs. "As the first decentralized exchange to receive a regulatory license, we're proving that decentralization and institutional standards are not mutually exclusive."
Under its Bermuda "T license," DerivaDEX will initially support a limited number of advanced retail and institutional traders. The platform offers centralized exchange-level execution speeds alongside on-chain settlement and non-custodial fund management, allowing users to retain direct control of their assets.
Industry supporters highlighted the platform's potential to bridge traditional and decentralized finance. Avichal Garg, Co-Founder and General Partner of Electric Capital, stated: "High-performance execution, on-chain settlement, and a clear regulatory framework are what is needed to unlock institutional participation at scale. DerivaDEX has pulled all of these pieces together."
At launch, DerivaDEX supports trading in major crypto perpetual products with plans to expand to additional markets and assets, including prediction markets and traditional securities.
