Binance Makes Strategic Investment in Crypto Derivatives Exchange FTX
Binance, the second largest crypto exchange in terms of daily traded volume has made a strategic investment on FTX, a crypto derivatives exchange.
A Dec. 20 announcement states that Binance made an equity investment in FTX as well as a long-term position in the native asset, FTX Token.
“Positive Competition“
Binance’s support will be used to foster sustainable growth within FTX’s ecosystem, as part of the strategic partnership.
Although Binance has not disclosed the amount of its investment, Sam Bankman Fried, founder of FTX, and head of Alameda Research’s affiliate Alameda Research — said it was in the order of “tens to millions.”
He claimed that this implied a valuation of FTX in the “hundreds of millions of dollars.” Binance’s strategic advisory and investment role will allow FTX to grow while maintaining its independence.
The first derivatives exchange was established in 2019 and offers professional derivative trading products, including perpetual and quarterly contracts on various crypto assets, leverage tokens, and over-the counter (OTC) services.
Binance reports that FTX has processed nearly half a million dollars daily in traded volume since its inception.
FTX, as a strategic partner, will help Binance build its liquidity and institutional product offerings including its flagship exchange, OTC trading desk, and OTC trading desk.