- OTC derivatives notional value hit $846 trillion in June 2025, up 16% in a year.
- BIS data show FX derivatives currently account for $155 trillion of that total.
- Stablecoins now handle most institutional crypto OTC settlement volume, supporting 24/7 liquidity.
The global over-the-counter derivatives maclass=”news-points”rket has grown to a scale rarely seen since before the 2008 financial crisis, according to new data from the Bank for International Settlements, and a growing share of settlement activity tied to that market is now moving through crypto infrastructure.
OTC derivatives notional value hit $846 trillion in June 2025, up 16% in a year. That marks the sharpest annual increase since 2008, a significant acceleration from the roughly 5% average annual growth the market had posted since the end of 2016.
Gross market value rose by $5 trillion, or 29%, to $21.8 trillion over the same period, the largest jump since 2022. The BIS attributed much of the growth to elevated uncertainty around trade policy, monetary conditions, and geopolitical tensions, with a spike in activity in April contributing heavily to the increase.
Reacting to the same, analyst Jake Claver said, “what happens next will shock everyone.”
Interest Rates Still Dominate
Interest rate derivatives alone account for 79% of all OTC derivatives notional, growing 15% year over year and driving much of the market’s overall expansion. Euro-denominated interest rate contracts grew even faster, up 24% since June 2024, and notional amounts in euros have now exceeded dollar-denominated contracts in that category every year since 2022.
FX derivatives currently account for $155 trillion of that total, BIS data show, up 19% from the prior year. About $100 trillion of those FX contracts mature inside just one calendar year, meaning a large share of the market requires continuous, short-cycle settlement and collateral management rather than long-dated exposure.
Where Crypto Fits Into the Picture
That short-dated settlement demand is where crypto-native infrastructure has started to play a role. Stablecoins reportedly account for the large majority of institutional volume moving through crypto OTC desks, offering settlement that operates continuously rather than during standard banking hours, along with features like cross-margining that let institutions manage collateral across positions more efficiently.
Ripple’s institutional platform, Ripple Prime, is one example of this shift, using its RLUSD stablecoin to support settlement and liquidity functions that mirror what banks and dealers already do in traditional FX and derivatives markets.
The broader trend isn’t about moving the entire $846 trillion market onto a single ledger. Instead, crypto OTC infrastructure is capturing specific operational flows, particularly around margin and short-term liquidity, where continuous settlement offers a genuine efficiency advantage over batch-based traditional systems.
A Market Still Concentrated
Despite the scale of the numbers, the traditional OTC market remains highly concentrated. Sixty-five large dealers across 12 major reporting countries account for 89% of total notional amounts outstanding and 67% of gross market value.
A broader set of dealers, captured only once every three years through the BIS Triennial Central Bank Survey, contributed 11% of notional amounts in the most recent count, up from 9% in 2022, with an outsized share of that coming from FX and commodity derivatives specifically.
Related: Ripple Prime Secures $200M Debt Facility for Margin Lending Expansion
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
