Binance, the major cryptocurrency exchange, has made a strategic investment in crypto derivatives exchange FTX.
#Binance Announces Strategic Investment in FTX and Lists FTX Token (FTT)https://t.co/wcedKpy9ds pic.twitter.com/dVrLCQiV74 — Binance (@binance) December 20, 2019
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.
JUST IN: @binance has invested an undisclosed amount of money in derivatives platform @FTX_Official as part of a strategic partnership between the two firms.@wsfoxley reports.https://t.co/o05zTuPfxS — CoinDesk (@coindesk) December 20, 2019
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.
<img src="https://www.cryptonewspoint.com/wp-content/uploads/2019/12/3bce7476-cd93-420b-961d-156e4b7fab57-1024x576.png" alt="" class="wp-image-7323 lazyload" width="503" height="283" />
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.
Source: binance.com | bloomberg.com | cointelegraph.com