Binance invests 'tens of millions' in Alameda Research-backed crypto derivatives platform FTX

Binance recently announced it made a strategic investment in cryptocurrency derivatives exchange FTX worth “tens of millions”. In addition to the equity investment into FTX, Binance also acquired a position in the FTX Token to better align the broader scope of the partnership. As part of the deal FTX and Binance will collaborate on a wide range of products and work towards building out their respective token ecosystems.

Why it matters:

• Launched in the spring of this year by Alameda Research founder and CEO Sam Bankman-Fried, FTX has quickly become a competitive cryptocurrency derivatives exchange, ranking 6th by market share. With fresh funding and support from Binance FTX looks to be gearing up for what is becoming an increasingly competitive derivatives space that features not only cryptocurrency giants such as BitMEX and OKEx, but also traditional giants such CME and Bakkt (ICE).
• Although not a majority investment, Binance appears to be on an acquisition spree. Since September Binance has acquired 3 businesses including Seychelles-based derivatives platform JEX, which Binance has since rebranded to Binance JEX.