TLDR
- XRPL proposal targets the $40B BTC and ETH options market dominated by Deribit.
- The plan supports American-style options and margin, with leverage up to 200x.
- Settlement would bridge to XRPL using XPOP-style proofs and ~80% signatures.
- Permissioned Domains and DEX tools may enable permissioned liquidity pools.
A proposal in the XRP Ledger community is targeting crypto options trading. It suggests a Hyperliquid-like sidechain that routes activity back to XRPL through a bridge.
The concept focuses on the roughly $40B options market, where Deribit is seen as the dominant venue. One core design choice could shape adoption, liquidity, and uptime during volatile trading.
XRPL plan targets options with a trading-first sidechain
A proposal circulating in the XRP Ledger community aims at crypto options trading. It describes a purpose-built sidechain that feels “Hyperliquid-like” for execution.
The design would connect back to XRPL through bridging for settlement. The pitch frames options as a focused market where structure and risk controls matter.
The proposal points to Hyperliquid as an example of a dedicated chain gaining liquidity. It argues that deep markets can form when execution, risk, and incentives align.
It also signals a strategy shift for parts of the XRPL ecosystem. The focus is a single financial product instead of broad DeFi features.
Why options are the target, not perpetual futures
The proposal comes as derivatives remain a major battleground in crypto trading. CoinGecko data cited in the document puts 2025 perp volume at $92.9T.
It also cites that perp DEX volume rose 346% to $6.7T in 2025. That growth has increased competition for trading flow across chains.
Perpetual futures are crowded across centralized and decentralized venues. The proposal argues that options are less contested on-chain today.
Options liquidity remains concentrated on centralized platforms. Deribit, owned by Coinbase, claims about 85% of the $40B BTC and ETH options activity.
Product design includes American-style options and high leverage
A key feature in the proposal is American-style options support. These contracts can be exercised before expiry, unlike European-style options.
The proposal treats this feature as closer to common TradFi structures. It can support certain hedges and structured strategies, depending on liquidity.
The document also includes margin and leverage up to 200x. That design sets expectations for a high-performance venue, not a small pilot.
Such products require reliable pricing, oracles, and liquidations. Options exercise and assignment also need clear handling during fast markets.
The design choice that could decide everything
The proposal outlines a trust-minimized bridge using XPOP-style proofs. It also proposes a high validator-signature threshold around 80%.
High thresholds can reduce some attack paths, yet they can raise liveness risk. A derivatives venue needs uptime during sharp moves and liquidations.
Liquidity is another hard constraint for options markets. Market makers go where spreads are tight, and they need dependable systems.
The proposal also arrives as XRPL adds compliance-focused tools. Permissioned Domains and Permissioned DEX features could support segmented access.
That creates a path for permissioned liquidity pools alongside open pools. The mix could appeal to institutions while keeping some DeFi access.
