As per the latest updates, Crypto exchange colossus Binance has invested in FTX, a derivatives platform as a part of its strategic partnership between the two firms. This news came out on Thursday when Binance purchased equity in the derivatives firm. As a part of this deal, they purchased long positions in the known FTT, the FTX Token, the native coin of the platform.
Sam Bankman Fried, FTX founder & CEO said, “The investment will help accelerate the growth of FTX with support and strategic advisory from Binance while FTX maintains its independent operations.”
As per the news on the deal, FTX will help develop Binance’s products in return, particularly in their flagship exchange, Binance.com along with the OTC (over-the-counter) trading desk. FTX has also announced its plan to build out a suite of products complementary to tokenized ecosystems. This is the project that Malta-based Binance is assisting.
FTX was founded in 2019 as an incubation project for Alameda Research a renowned digital asset research firm. FTX is known to offer OTC, futures, spots, and indexes trading. They also operate out of the Carribean islands of Antigua and Barbuda. As per the latest stats released by Binance, the exchange processes around half a billion dollars of trade per day.
Binance CEO, Changpeng “CZ Zhao”, said, “The FTX team has built an innovative crypto trading platform with stunning growth. We see quite a bit of ourselves in the FTX team and believe in their potential in becoming a major player in the crypto derivatives markets.”
This investment is a step taken by Binance following the September acquisition of JEX, a Seychelles-based spot as well as a derivatives platform. This acquisition they made helped the exchange add options & futures to the trading platform they own.