Binance invests in the FTX exchange
Binance invests in the FTX exchange
Crypto

Binance invests in the FTX exchange

By Marco Cavicchioli - 20 Dec 2019

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Binance has announced a strategic investment in the FTX crypto derivatives exchange. 

FTX was launched in spring 2019, and in a few months it has already become one of the leading professional crypto derivatives markets, with an average daily trading volume of almost half a billion US dollars.

The exchange offers liquid markets with perpetual and quarterly futures on over twenty different products, as well as an OTC desk with fiat currency support and quotations for hundreds of products. 

Binance has been offering crypto derivatives such as BTC and ETH futures on its exchange for some time now, so this investment looks far from unexpected. 

The company has invested by buying shares in FTX, but also by taking a long-term position on the FTX (FTT) token as a contribution to the sustainable growth of its ecosystem.

The goal is to establish a strategic partnership to develop the cryptocurrency ecosystem together. 

In fact, FTX will help implement liquidity and institutional product offerings within the Binance ecosystem, while the two companies will work together on a range of new products that will enable users to access an entire tokenised ecosystem. 

Binance’s CEO, Changpeng CZ Zhao, said

“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 markets. We are pleased to have an excellent partner joining the Binance ecosystem and aim to grow the crypto market together”.

Binance’s CFO, Wei Zhou, added: 

“Continuing to offer better trading products and platforms has always been our goal. The crypto exchange segment is increasingly competitive, and Binance is also in competition with our own portfolio companies. We encourage positive competition as well as partnerships that strive to bring the best products and services to the market”.

FTX founder and CEO, Sam Bankman-Fried, commented: 

“Binance is a market leader which has strong synergy with derivatives platforms, and we appreciate their global industry leadership, consistent execution and innovation. The investment will help accelerate the growth of FTX with support and strategic advisory from Binance while FTX maintains its independent operations”.

 

Marco Cavicchioli
Marco Cavicchioli

Class 1975, Marco teaches web-technologies and is an online writer specializing in cryptocurrencies. He founded ilBitcoin.news, and his YouTube channel has more than 25 thousand subscribers.

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