The Malta-registered cryptocurrency exchange Binance has invested an undisclosed amount of money in derivatives platform FTX as part of a strategic partnership between the two firms.
Announced on Friday, the move came as a strategic investment from the global exchange, which is constantly acquiring stakes in other platforms.
In addition to the equity investments in FTX, Binance has also taken a long-term position in the FTX’s native token, FTT. This, according to the exchange, will help in the sustainable growth of the FTX ecosystem.
The founder and CEO of FTX, Sam Bankman Fried said that the investment will help accelerate the growth of FTX with support and strategic advisory from Binance while FTX maintains its independent operations.
Per the deal, FTX will help to build out the liquidity and institutional product offerings across the Binance ecosystem, including its global exchange and over-the-counter (OTC) trading desk. FTX also announced its intention to build out a suite of products complementary to tokenized ecosystems, a project Malta-based Binance will assist.
Launched earlier this year, FTX was an incubation project for Alameda Research, a digital asset research firm. FTX offers OTC, futures, indexes and spot trading and operates out of the Caribbean islands of Antigua and Barbuda. The exchange processes nearly a half-billion dollars of trade volume per day, according to a release from Binance.
Commenting on the development, Binance’s founder and CEO, Changpeng “CZ” Zhao, said: “The FTX team has built an innovative crypto trading platform with stunning growth. 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.”
Since its launch, the crypto exchange colossus has made significant efforts in becoming one of the leaders of the industry, including its acquisition of JEX, a crypto platform that offers spot and derivatives trading for crypto assets.
