Binance Invests Undisclosed Sum in Crypto Derivatives Platform FTX

Crypto exchange Binance has invested in derivatives platform FTX as part of a strategic partnership between the firms.

Dec 20, 2019 at 3:20 a.m. UTC
Updated Sep 13, 2021 at 11:51 a.m. UTC

Crypto exchange colossus Binance has invested an undisclosed amount of money in derivatives platform FTX as part of a strategic partnership between the two firms.

As part of the deal announced Thursday, Binance has purchased equity in the derivatives firm and purchased long positions in the FTX Token, FTT, the platform’s native coin. 

“The investment will help accelerate the growth of FTX with support and strategic advisory from Binance while FTX maintains its independent operations,” FTX founder and CEO Sam Bankman-Fried said.

In return, FTX will help develop Binance’s products, particularly its flagship exchange, Binance.com, and over-the-counter (OTC) trading desk. FTX also announced its intention to build out a suite of products complementary to tokenized ecosystems, a project Malta-based Binance will assist.

Founded in the spring of 2019, FTX was an incubation project for Alameda Research, a digital asset research firm. FTX offers OTC, futures, indexes and spot trading and operates out of the Caribbean islands of Antigua and Barbuda. The exchange processes nearly a half-billion dollars of trade volume per day, according to a release from Binance. 

“The FTX team has built an innovative crypto trading platform with stunning growth,” Binance CEO Changpeng “CZ” Zhao said in a statement. “We see quite a bit of ourselves in the FTX team and believe in their potential in becoming a major player in the crypto derivatives markets.”

The investment follows Binance’s September acquisition of JEX, a Seychelles-based spot and derivatives platform. The acquisition helped the exchange add options and futures to its trading platform.


Read more about
The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
Market Wrap: Bitcoin Unable to Hold $30K, Altcoins Mixed

BTC declined by 2% over the past 24 hours, while Fantom's FTM token rallied by as much as 16%.

BTC declined by 2% over the past 24 hours, while Fantom's FTM token rallied by as much as 16%.

CoinDesk - Unknown
2
CoinDesk - Unknown
Crypto Industry Battles to Exempt NFTs, DeFi From Tax Reporting Rules

The OECD is trying to introduce new rules to stop crypto being used to stash assets out of sight of the taxman.

The OECD is trying to introduce new rules to stop crypto being used to stash assets out of sight of the taxman.

CoinDesk - Unknown
3
CoinDesk - Unknown
Bitcoin mantiene el soporte en $27K-30K, con resistencia en $35K

Es probable que exista un breve rebote hacia una zona de alivio, similar a lo que ocurrió a finales de febrero y finales de marzo.

Es probable que exista un breve rebote hacia una zona de alivio, similar a lo que ocurrió a finales de febrero y finales de marzo.

CoinDesk - Unknown
4
CoinDesk - Unknown
How to Get Started in The Sandbox

Here's a step-by-step guide on what you need to know to explore and play in The Sandbox metaverse. This piece is part of CoinDesk's Metaverse Week.

Here's a step-by-step guide on what you need to know to explore and play in The Sandbox metaverse. This piece is part of CoinDesk's Metaverse Week.

CoinDesk - Unknown