A Proposal on the Functional Design of Option Derivatives for Blockchain-Based Security Token System

In 2024, the average daily transaction value in the domestic derivatives market increased significantly compared to the previous year. Although the option derivatives market is small, option derivatives play an important role in hedging the risk of underlying assets or maximizing profits. Security tokens based on the ERC-1400 standard are trading real world assets on the blockchain, and securities companies are preparing to launch a system ahead of the passage of related laws and regulations. This study proposes a design that increases the liquidity of token transactions by adding an option trading function to token securities. It examines the characteristics of option derivatives and presents a design plan for trading options in the existing token securities system.