Search Inside Bitcoins

Crypto Derivatives Platform FTX Receives “Tens of Millions” Investment From Binance

Crypto Derivatives Platform FTX Receives “Tens of Millions” Investment From Binance
Crypto Derivatives Platform FTX Receives “Tens of Millions” Investment From Binance

Binance doesn’t seem to want to stop its expansion. The latest testament to this is its new surge in doubling down within the crypto derivatives market.

Owning a New Equity Stake in FTX

The exchange has recently gotten its hands on an equity stake within the crypto derivatives platform FTX. FTX itself has already been backed by Alameda Research. The number of funds invested within the company by Binance wasn’t fully disclosed, but the founder and CEO of FTX, Sam Bankman-Fried, described it as “tens of millions” in investments.

The public announcement comes only shortly after Binance made a similar one in regards to another, a little-known derivatives exchange platform called JEX. Having acquired the exchange in September this year, Binance had it renamed to Binance JEX. On the other hand, FTX will enjoy independent entity status within the acquisition, operating outside the Binance brand.

Will Operate Independently From Binance

Bankman-Fried gave a public statement about the matter. He explained that Binance’s investment would help speed FTX’s growth. The new extension would be attributed to the support and strategic advisory from Binance, Bankman-Fried says, with FTX maintaining independent operations. An important thing to note would be that Bankman-Fried is also the CEO of Alameda Research, a cryptocurrency liquidity provider.

FTX told the public that Binance was the first, and currently only, the investor that decided to put its money within the platform. As per the terms of the deal, both firms are taking steps to create improved crypto-oriented platforms and trading products. In particular, Binance will lend FTX its aid to enable the platform to grow “faster and larger.” FTX will repay Binance by helping the company build out its institutional and liquidity products within its central exchange and its over-the-counter trading desk as well.

Zhao: Sees Much of Binance in FTX

Binance has further taken a long-term position within FTT, the FTX’s native coin. This is in addition to the equity investment the firm had already done.

Changpeng Zhao, also known as “CZ,” is the CEO of Binance. Zhao explained that FTX and its team had built an “Innovative crypto trading platform with stunning growth.” Zhao believes that the people at FTX, having backgrounds as professional traders, seem to be like the team of Binance, stating that he sees “quite a bit of ourselves in the FTX team.” Zhao believes that the group has the potential to be a significant player within the derivatives market of the crypto industry.

Read next

InsideBitcoins uses cookies to improve and customize your user experience. Learn more

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.