Binance invests in derivatives platform FTX
The leading global crypto exchange, Binance announced its strategic investment in the cryptocurrency derivatives exchange, FTX, incubated by liquidity provider Alameda Research. The investment amount was not disclosed.
With regard to the partnership, the Malta-based crypto platform and FTX will essentially work together to further develop the cryptocurrency ecosystem. According to the official blog post, Binance has also taken a long-term position in the FTX Token [FTT] to help enable the sustainable growth of the FTX ecosystem, in addition to the equity investment into FTX.
Following the development, Binance CEO, CZ stated,
“The FTX team has built an innovative crypto trading platform with stunning growth. With their backgrounds as professional traders, we see quite a bit ourselves in the FTX team and believe in their potential in becoming a major player in the crypto derivatives market. We are pleased to have an excellent partner joining the Binance ecosystem and aim to grow the crypto market together”
This partnership also aims to leverage FTX’s platform to build the liquidity and institutional product offerings across the Binance ecosystem which includes the Binance.com exchange as well as its over-the-counter [OTC] trading desk. According to analytics provider Skew, FTX registers around $500 million in daily volume making it one of the world’s largest Bitcoin futures exchange.
Sam Bankman-Fried, Founder and CEO of FTX commented,
“Binance is a market leader which has strong synergy with derivatives platforms, and we appreciate their global industry leadership, consistent execution and innovation.”
Previously, Binance had acquired another derivatives platform called JEX in September which was later rebranded to Binance JEX.