Most "Bitcoin options" articles are really Ethereum options articles wearing a Bitcoin hat.
They list Hegic, Derive, Aevo, and a handful of other DeFi protocols that technically support BTC as an underlying asset, but run entirely on Ethereum or Arbitrum. That's not Bitcoin options infrastructure. That's Bitcoin as a price reference on someone else's chain.
Real Bitcoin options means the collateral, settlement, and contract execution happen on Bitcoin or Bitcoin-native infrastructure. By that standard, the list gets short fast.
But here's the thing: the full landscape still matters. Whether you're building on Bitcoin or trading BTC exposure, you need to understand all of it: the truly native approaches, the Ethereum-based DeFi options that use BTC as underlying, and the centralized giants where almost all the actual volume lives. Each category tells you something different about where this space is heading.
So this list covers all of them, with a clear label on each so you know exactly what you're dealing with.
The Bitcoin-Native Protocols (Actually Built on Bitcoin)
These are the ones where Bitcoin itself is the settlement layer. No Solidity. No EVM. Just Bitcoin's script and cryptography doing the work.
1. DLC Markets - Bitcoin-Native Options Without Smart Contract Risk
What it is: A bilateral OTC derivatives platform built on Discreet Log Contracts (DLCs), which are Bitcoin's native conditional payment primitive. Launched its options booking and settlement MVP on mainnet in March 2025, spun out of the LN Markets team.
Why it matters: This is the most technically pure Bitcoin options infrastructure that exists right now. Collateral is held in Bitcoin's 2-of-2 multisig scripts. Settlement is automated entirely by oracle publication, with no third party touching funds. There are no Turing-complete smart contracts involved, which means none of the exploit surface that has drained billions from Ethereum-based protocols. Contracts are also invisible to external observers on-chain, offering privacy between counterparties while remaining fully verifiable by those parties. The team raised a $3 million seed round from ego death capital, Lemniscap, Bitfinex, and Fulgur Ventures.
Key features:
Collateral held in Bitcoin 2-of-2 multisig directly
Embedded Black-Scholes pricer with automated Greeks
SPAR margin model for initial margin calculation
Bilateral settlement with no custodial intermediary
Oracle failure protection with automatic deposit recovery
Open-source oracle system (Pythia, MIT licensed)
The catch: Still early access, focused on institutions and professional traders. Retail UX is not the priority yet. The roadmap for multi-leg options strategies and multi-oracle setups is outlined but not shipped. Liquidity is thin because the network of counterparties is still being built.
2. LN Markets - Lightning-Speed Bitcoin Derivatives With DLC Backbone
What it is: The first Bitcoin derivatives trading platform built on the Lightning Network, offering futures and options with instant collateral deposit and withdrawal via Lightning wallet. Founded in Paris in 2019 by former bank traders, now also the parent project behind DLC Markets.
Why it matters: LN Markets has more than $2 billion in cumulative trading volume, which is meaningful validation that Lightning-native derivatives can work at scale. For retail traders, the experience is frictionless: connect a Lightning wallet, fund instantly, trade immediately, withdraw directly back to your wallet. No KYC, no account creation, no custodial risk during open positions. The shift to DLC infrastructure represents their next evolution, moving from a model where LN Markets acts as the counterparty to a fully non-custodial bilateral settlement model.
Key features:
Lightning wallet connect for instant deposit and withdrawal
Zero-slippage execution engine on futures
Options trading on BTC with Bitcoin settlement
No KYC or account registration required
DLC-based non-custodial model in active development
Targets retail and semi-professional traders
The catch: As LN Markets acts as counterparty on the centralized version, traders still take counterparty risk on open positions until the full DLC rollout is complete. The platform is also not available in certain jurisdictions. Compared to Deribit, the options product is less mature and has less liquidity.
The DeFi Options Protocols (Ethereum-Based, BTC as Underlying)
These protocols run on Ethereum, Arbitrum, or Optimism. They trade BTC in the form of wrapped BTC (wBTC) or use BTC price feeds as the reference for settlement. They are not Bitcoin-native, but they represent the most liquid decentralized options infrastructure available today.
3. Hegic - The OG On-Chain Options Protocol
What it is: One of the oldest on-chain options trading protocols, launched on Ethereum in 2020. Supports buying and selling call and put options on wBTC and ETH using a peer-to-pool model.
Why it matters: Hegic was the first to prove that decentralized options with pooled liquidity could work at a meaningful scale. The peer-to-pool model means liquidity providers deposit into a shared pool rather than providing liquidity for specific contracts, simplifying the process considerably for passive participants. The HEGIC token gives stakers a share of protocol fees and discounts on option premiums.
Key features:
wBTC call and put options available
Peer-to-pool liquidity model
Operates on Arbitrum for lower fees
HEGIC staking for fee sharing and premium discounts
Supports multiple assets including LINK, UNI, and ARB
The catch: wBTC is not Bitcoin. It is an ERC-20 token backed by custodied Bitcoin, introducing custodial risk from BitGo. The wrapped BTC model is exactly what Bitcoin-native solutions like DLC Markets are trying to eliminate.
4. Derive (formerly Lyra Finance) - AMM-Based Options With Real Liquidity
What it is: A decentralized options protocol that operates as an automated market maker for options, originally launched on Optimism as Lyra Finance. Rebranded to Derive and expanded to its own L2. Supports BTC, ETH, and other assets with European-style options.
Why it matters: Derive is one of the few DeFi options protocols that has achieved meaningful liquidity. It uses an off-chain order matching engine (Lyra Matcher) combined with on-chain settlement, which gives it the responsiveness of a centralized exchange while retaining non-custodial settlement. Portfolio hedging features and accurate options pricing make it credible for traders with real positions to manage.
Key features:
AMM model with portfolio hedging support
Off-chain order matching, on-chain settlement
European-style options on BTC and ETH
Liquidity provider vaults for passive income
Deployed on its own L2 for lower fees
The catch: It is built on Ethereum infrastructure. BTC exposure is via price feed, not actual BTC settlement. For Bitcoin-native holders who want to hedge without touching EVM chains, this adds significant friction and trust assumptions.
5. Aevo - High-Performance DeFi Options Exchange
What it is: A decentralized exchange for options and perpetuals, built on a custom L2 that rolls up to Ethereum using the OP Stack. Launched by the team behind Ribbon Finance, one of the pioneers of decentralized options vaults. Has processed over $10 billion in options volume since 2020.
Why it matters: Aevo solved a core problem with DeFi options: speed. Most on-chain options protocols are too slow for active traders, who need rapid order fills during volatile markets. Aevo's off-chain order book with on-chain settlement strikes a workable balance between speed and non-custody. The connection to Ribbon Finance gives it an established user base familiar with structured options products.
Key features:
Custom L2 for high-throughput options trading
Off-chain order book with on-chain settlement
Perpetuals and structured products alongside options
BTC options available alongside ETH and altcoins
Portfolio margin across positions
The catch: Another Ethereum ecosystem play. BTC is treated as a price reference asset, not settled in actual Bitcoin. The custom L2 also introduces additional trust assumptions beyond base Ethereum.
6. Kyan (formerly Premia) - Permissionless Options on Any Token
What it is: A decentralized options marketplace on Arbitrum and Ethereum that allows permissionless creation of options pools for any token that meets certain criteria. Originally launched as Premia, rebranded to Kyan with V3.
Why it matters: Kyan's permissionless pool creation sets it apart from protocols that only support a fixed asset list. V3 significantly improved capital efficiency, and the upcoming V4 is adding a Portfolio Marking system and expanded services. The community-driven liquidity model means anyone can become an options market maker by depositing into a pool.
Key features:
Permissionless pool creation for any supported token
BTC options via wBTC
Deployed on Arbitrum for low fees
V3 capital efficiency improvements
Community-driven liquidity provisioning
The catch: Lower liquidity compared to Aevo or Derive for BTC specifically. The permissionless model can result in fragmented, shallow markets on less popular assets.
The Centralized Giants (Where Almost All Volume Actually Lives)
These are not protocols in the DeFi sense. They are centralized exchanges with custodial models. But they represent the overwhelming majority of Bitcoin options volume globally, and no honest overview of this space can ignore them.
7. Deribit - The Undisputed King of Bitcoin Options
What it is: The world's largest cryptocurrency options exchange, accounting for roughly 85% of total crypto options volume. Set a record of $50.27 billion in BTC options open interest in October 2025 and processed $743 billion in total options volume in 2024. Acquired by Coinbase in 2025.
Why it matters: Deribit is not just a platform. It is the price-discovery venue for Bitcoin options. When institutional traders and market makers need to hedge BTC volatility at scale, they go to Deribit. The depth, the expiry ladder, the DVOL index (Bitcoin's implied volatility benchmark), the RFQ desk, the portfolio margin model: everything about Deribit is calibrated for serious options trading. Max pain levels and put-call ratios on Deribit genuinely move Bitcoin's spot price around major expiries.
Key features:
$46 billion+ in BTC options open interest (as of late 2025)
Daily, weekly, monthly, and quarterly expiries
Inverse and USDC-settled contracts
Portfolio margin for multi-leg strategies
DVOL index as the market's implied volatility benchmark
Block trading and combo orders for institutions
Colocation services in LD4 data center
The catch: Centralized and custodial. Restricted in certain jurisdictions including the US. Requires KYC. Your BTC lives on their platform, not in your wallet.
8. CME Group - Regulated Bitcoin Options for Institutions
What it is: The Chicago Mercantile Exchange's Bitcoin options product, launched on top of their Bitcoin futures contracts. Cash-settled based on the CME CF Bitcoin Reference Rate (BRR). The primary venue for regulated institutional Bitcoin derivatives in the United States.
Why it matters: CME represents the institutional-grade, CFTC-regulated layer of the Bitcoin options market. For hedge funds, asset managers, and treasury desks that cannot legally trade on offshore venues like Deribit, CME is often the only viable option. The $4.5 billion in BTC options open interest it holds (as of late 2025) understates its importance, since CME positions are often basis trades and hedges run alongside ETF positions.
Key features:
CFTC-regulated, fully compliant for US institutions
Cash-settled against CME CF Bitcoin Reference Rate
Standard and micro contract sizes (1 BTC and 0.1 BTC)
Options on Bitcoin futures (not spot)
Available through most prime brokers
Traditional market hours with Sunday-Friday trading
The catch: Cash-settled means no actual BTC changes hands. Options are on futures, not spot, adding basis risk. Retail access is limited since CME trades through futures commission merchants, not directly.
9. Binance - Highest Volume, Broadest Access
What it is: The world's largest cryptocurrency exchange by overall derivatives volume, with $2.55 trillion in futures volume recorded in July 2025. Offers Bitcoin options through both an "Easy Options" interface for beginners and a Classic interface for advanced traders.
Why it matters: Binance's scale means deep liquidity and tight spreads for popular BTC options strikes. For retail traders in markets where Deribit is restricted, Binance is often the most accessible gateway to BTC options. The Easy Options interface reduces the cognitive load significantly for traders who want simple call or put exposure without managing Greeks.
Key features:
Largest overall derivatives volume globally
"Easy Options" beginner interface
USDT-settled options
Unified margin across spot, futures, and options
Daily, weekly, and monthly expiries
The catch: BTC options open interest sits at only $558 million versus Deribit's $46 billion. For actual options trading at scale, Binance is not the first choice of professionals. Regulatory scrutiny and licensing issues in multiple jurisdictions remain ongoing concerns.
10. OKX - The Professional Alternative With 21% Market Share
What it is: A major crypto derivatives exchange holding approximately 21% of global derivatives market share in early 2025. Offers a full options suite on Bitcoin with daily, weekly, monthly, and quarterly expiries, alongside an RFQ portal for institutional block trades.
Why it matters: OKX has positioned itself as the serious alternative to Deribit for traders who want deeper features than Binance but more accessible pricing than an institutional-only venue. The portfolio margin system and unified accounts across spot, futures, and options make it capital-efficient for multi-strategy traders. The RFQ desk is genuinely useful for larger options orders where market-impact matters.
Key features:
21% global derivatives market share
BTC options with 0.01 BTC contract multiplier
Daily, weekly, monthly, and quarterly expiries
RFQ portal for block options trades
Portfolio margin and unified accounts
Simple Options interface for beginners
The catch: Still centralized and custodial. Geographic restrictions apply. US residents cannot access the full OKX derivatives suite.
11. Bybit - The Retail-Friendly European-Style BTC Options Platform
What it is: A major derivatives exchange that has become particularly popular for retail options traders with its USDC-settled European-style contracts and simplified interface. Monthly BTC options volume averages around $11.3 billion.
Why it matters: Bybit carved out a meaningful niche by making options more accessible to retail participants. Automatic exercise at expiry based on the 30-minute TWAP simplifies management for less experienced traders. Portfolio margin support means strategy traders can run multi-leg positions without excessive capital requirements. The mobile app mirrors desktop functionality well, which matters for a generation of traders who work primarily from mobile.
Key features:
USDC-settled European-style BTC options
Automatic exercise at expiry (30-min TWAP settlement)
Portfolio margin for multi-leg strategies
Strong mobile app
$11.3 billion average monthly BTC options volume
The catch: $1.29 billion in open interest is meaningful but modest compared to Deribit. Liquidity thins significantly on away-from-money strikes. US residents restricted.
What This Landscape Tells You
Look at that list carefully. Ten protocols covering Bitcoin options. Exactly two of them run on Bitcoin itself.
That is not an accident. Bitcoin's script is intentionally not Turing-complete. You cannot just deploy a Solidity contract on Bitcoin and call it a day. Building options infrastructure natively on Bitcoin requires working with DLCs, multisig primitives, and oracle architectures that most developers have never touched. The technical bar is genuinely higher.
But the result, when it works, is fundamentally different from anything on the Ethereum side. A DLC Markets options contract is secured by Bitcoin's proof-of-work. There is no smart contract exploit vector. There is no bridge hack risk. There is no custodian holding your collateral. The Bitcoin blockchain itself is the clearinghouse.
That is the gap that protocols like DLC Markets and LN Markets are closing. And with Taproot, Schnorr signatures, and ongoing DLC specification work maturing in 2024-2025, the tooling to build this well now exists in a way it simply did not before.
The $55 billion BTC options market currently lives almost entirely on Deribit and a handful of centralized exchanges. The infrastructure to bring a meaningful chunk of that on-chain, in a truly Bitcoin-native way, is just starting to get built.
That is not a niche story. That is one of the most important open problems in Bitcoin DeFi.
If you want to go deeper into the Bitcoin DeFi stack, here is what else is worth reading:
