Binance exchange in strategic partnership with FTX crypto derivative platform has invested an undisclosed amount in FTX to acquire its equity stakes. The investment was done in the native coins FTT of the FTX tokens.
Though the exact investment amount is not disclosed, FTX has indicated that the amount is tens of millions.
After its acquisition of Seychelles based derivatives platform JEX in September, this is another acquisition that will help Binance to add more products to its platform. JEX had been christened as Binance JEX but as per the sources, FTX will operate independently and its title will remain unchanged.
Binance and FTX will work together to develop more crypto products on the platforms. FTX will offer liquidity across the Binance platform, whereas Binance will help the FTX to expand its operations in derivatives markets. Both of the firms will integrate on listing assets and tokenization.
FTX will develop Binance products including the binance.com website and OTC (Over-the-Counter) trading desk, and its flagship exchange in association Malta branch of Binance.
The FTX team has built an innovative crypto trading platform with stunning growth. Now it plans to develop an array of products suitable for the tokenized ecosystem.
Binance CEO, Changpeng CZ Zhao quoted, “We see quite a bit of ourselves and believe in the FTX team and believe in their potential in becoming a player in the Crypto derivatives markets.”
FTX founder and CEO Sam Bankman-fried commented,
“Investment will help accelerate the growth of FTX foot and strategic advisory from Binance while FTX maintains its independent operations.” Bankman added that their powerful partnership with Finance is helpful for tokenization projects.
With its second investment in purchasing derivatives from FTX, Binance Malta has become the first outsider investment firm that invested in FTX. This investment will multiply its market share in derivatives.
More about FTX
FTX was founded in May 2019 by digital assets research firm Alameda Research. It claims to reach trading volumes as high as $500 million in a very short time. However, it needs to expand more to increase its comparatively trivial market share competing for other big layers.