Binance Makes Strategic Investment In FTX
December 20, 2019
Binance Makes Strategic Investment In FTX
December 20, 2019

Binance, the major cryptocurrency exchange, has made a strategic investment in crypto derivatives exchange FTX.

On December 20 (today), it has been reported that Binance has made both an equity investment in FTX and is taking a long term position in the exchange’s native asset, FTX Token (FTT)

However, within the scope of the strategic partnership, Binance’s backing will aim to drive sustainable growth in FTX’s ecosystem. 

While Binance has not itself disclosed the sum of its investment, Sam Bankman Fried, the Founder of FTX and Head of its affiliate Alameda Research, a quantitative trading firm, and crypto liquidity provider, said that it was to the order of “tens of millions.”

Also, he said that Binance’s investment and the strategic advisory role will help FTX to accelerate its growth while it maintains the independence of its operations.

ALSO READ :  Bitcoin Needs ‘Real Use Cases’ to Become Digital Gold, Says ICE Chief

It has been analyzed that the derivatives exchange was founded in early 2019 and provides professional derivative trading products including quarterly and perpetual contracts on various crypto assets, leverage tokens and over-the-counter (OTC) services. 

So, according to Binance, FTX has grown to process almost half a billion dollars in daily traded volume, since its founding.

As a strategic partner, FTX will also help Binance to build out its existing liquidity and institutional product offerings, including its flagship exchange and OTC trading desk.

Changpeng Zhao (CZ), the CEO of Binance, stated:

“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.“ 

Also, Wei Zhou, the CFO of Binance, stated that the Binance team encourages “positive competition as well as partnerships” to help develop new products and services for the industry.

ALSO READ :  Visa is Still Interested in Developing Libra with Facebook

Source: binance.com | bloomberg.com | cointelegraph.com


Disclaimer

Crypto News Point a news platform of Digital Notice Media Labs is a regular publication of information, analysis, and commentary focused primarily on blockchain technology and business, cryptocurrency, blockchain-based tokens, market trends, and trading strategies. We do not provide individually tailored investment advice and does not take a subscriber’s or anyone’s circumstances into consideration when discussing investments, nor is Crypto News Point registered as an investment adviser or broker-dealer in any jurisdiction. Information contained herein is not an offer or solicitation to buy, hold, or sell any security.

Affiliate Disclosure: To help support the work we do here at CNP, we often link to products and deals from around the web. Should you buy some of these, we may get a portion of the sale.

You May Also like

Ishita Bora

Ishita Bora is a content creator at Digital Notice Media Labs. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. She is an archetypal writer, who loves to create her own little world with words and locutions. Apart from this, her interest lies in blockchain technology and cryptocurrency space, as she loves writing about blockchain and other blockchain-related articles. Currently, she is working on blockchain-based news, reviews, and guides.
Share This

Share This

Share this post with your friends!