Binance Takes a Minority Stake in Crypto Derivatives Platform FTX


Binance, the world’s largest crypto exchange, announced the completion of a strategic investment in crypto derivatives platform FTX on Thursday.

According to the announcement, Binance has provided FTX with an undisclosed amount of working capital, in addition to taking a “long-term” position in FTX Token (FTT) to help grow the exchange’s ecosystem.

FTT has been on a roll since the start of November. (TradingView)

“The FTX team has built an innovative crypto trading platform with stunning growth. 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,” said Binance CEO Changpeng “CZ” Zhao. “We are pleased to have an excellent partner joining the Binance ecosystem and aim to grow the crypto market together.”

With its new partnership, FTX will assist Binance in building out the liquidity and institutional product offerings across the Binance ecosystem, including its exchange and over-the-counter (OTC) trading desk.

“Binance is a market leader which has strong synergy with derivatives platforms, and we appreciate their global industry leadership, consistent execution and innovation,” said Sam Bankman-Fried, founder and CEO of FTX, explaining why the startup welcomed Binance as an investor. “The investment will help accelerate the growth of FTX with support and strategic advisory from Binance while FTX maintains its independent operations.”

Interestingly, FTX has led the way on tokenized derivative products, including leveraged long and short tokens and indices. It’s possible that Binance may look to list some of these unique derivative tokens in certain jurisdictions.

The top derivative tokens by 24-hour volume (FTX)

Binance has also listed FTT and opened trading for FTT/BNB, FTT/BTC and FTT/USDT at 10:00 PM (EST) on December 19.

More: Binance Announces Strategic Investment in FTX and Lists FTX Token (FTT)

Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.

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