Bybit, a Dubai-based crypto exchange, has announced the addition of crypto options trading to its business, allowing customers to trade USD Coin (USDC) options and perpetuals.

In specific, according to Ben Zhou, co-founder and CEO of Bybit, the decision to expand the product range was made in response to community demand. Investors are interested in trading options because they may “serve as a hedge against existing risks and provide greater market exposure.” Traders can also use it to diversify their investments.

The exchange’s newly announced crypto options contracts function in the same way as their traditional financial equivalents. It lets users to speculate on an asset’s future price in US dollars and settle deals in USDC. “Options contracts are rights, not duties,” Zhou explained, “therefore if the option is not exercised, they would expire without a transaction.”

While options is aimed for experienced traders such as institutional customers and market makers, Zhou believes it may also be used by conventional finance traders.

Zhou said that: “The broadening range of products and services denominated in cryptocurrencies helps investors who are more familiar with traditional money.”

While the program allows Bybit customers who have completed their Know Your Customer (KYC) procedure to trade options, locations such as the United States, mainland China, Singapore, Quebec, Canada, and North Korea are not included.

CME Group, a foreign exchange broker, announced intentions to provide micro-sized Bitcoin (BTC) and Ether (ETH) options in March. The organization released options contracts for the current mini BTC and ETH futures before the month ended.

More institutions are eager to enter the cryptocurrency industry as it becomes more regulated. NEAR Foundation CEO Marieke Flament reportedly stated that institutional players have a “very strong appetite” to learn how they may engage in and enter the crypto ecosystem.