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Binance's Investment Flow To Acquire Minority Stake In Crypto-Derivative Exchange, ‘FTX’

Cryptocurrency derivatives market has continued to fetch numerous interests after the recent trends in the recent past.

The renowned cryptocurrency exchange, Binance which happens to be the largest exchange in the world by the trade volume, has made an announcement of strategic investment in a crypto derivatives exchange platform FTX today with an objective of further growth and development of the cryptocurrency ecosystem.

As part of the strategic alliance, the equity investment into FTX, Binance has taken a long-term position in the FTX Token (FTT) (an undisclosed amount of investment) to assist enable the sustainable growth of the FTX ecosystem, associating with the broader scope of the partnership, thereby, Binance and FTX will work together to further develop the cryptocurrency ecosystem.

FTX records approximately around five hundred million US dollars ($500 million) in a daily trade to feature them as the seventh most-significant Bitcoin futures exchange. FTX has also developed leveraged tokens, options, index futures, and spot markets, all powered by a single stablecoin collateral wallet. Incubated by liquidity provider Alameda Research, FTX also has an OTC desk with fiat support and 24/7 quotes in hundreds of products.

The Binance CEO, Changpeng Zhao (CZ), commented on this strategic deal “we are pleased to have an excellent partner joining the Binance ecosystem and aim to grow the crypto market together, 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.”

Sam Bankman-Fried, the founder and the CEO of FTX also said on the partnership while explaining why he 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.”

“Binance is a market leader which has strong synergy with derivatives platforms, and we appreciate their global industry leadership, consistent execution and innovation,”

“Continuing to offer better trading products and platforms has always been our goal. The crypto exchange segment is increasingly competitive, and Binance is also in competition with our own portfolio companies,”said Wei Zhou, Binance CFO. “We encourage positive competition as well as partnerships that strive to bring the best products and services to the market.”

In the recent past, the Malta-based exchange, Binance has acquired a crypto-derivatives trading platform ‘JEX’. ‘JEX’ is a crypto-asset trading platform offering spot and derivatives trading services.

With all these developments including the latest one, Binance appears to be aggressively positioned in the gamut of crypto-assets as the strategic alliances are likely to fetch them synergy. FTX and JEX will join the Binance ecosystem as Binance JEX and focus on further building the crypto-asset derivatives market, providing Binance users with professional services including futures contracts, options and other derivative products.

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