Binance, the second-largest crypto substitution by daily traded volume, has made a strategic investment in crypto derivatives exchange FTX.

According to a December. 20 announcement, Binance has fabricated both an equity investment in FTX and is taking a long term position in the exchange'southward native asset, FTX Token (FTT).

"Positive competition"

Inside the scope of the strategic partnership, Binance's bankroll volition aim to bulldoze sustainable growth in FTX's ecosystem.

While Binance has not itself disclosed the sum of its investment, Sam Bankman Fried — the founder of FTX and caput of its affiliate Alameda Research, a quantitative trading business firm and crypto liquidity provider — told Bloomberg information technology was to the social club of "tens of millions."

This, he claimed, implied a valuation for FTX "in the hundreds of millions of dollars." He said that Binance'due south investment and strategic advisory function will help FTX to advance its growth while it maintains the independence of its operations.

The derivatives exchange was founded in early 2022 and provides professional derivative trading products including quarterly and perpetual contracts on various crypto avails, leverage tokens and over-the-counter (OTC) services.

Since its founding, FTX has grown to procedure most one-half a billion dollars in daily traded volume, according to Binance.

As a strategic partner, FTX volition besides help Binance to build out its existing liquidity and institutional production offerings, including its flagship exchange and OTC trading desk.

In a argument, Binance CEO Changpeng Zhao pointed to FTX'south "stunning growth," adding that:

"With their backgrounds equally professional traders, we come across quite a bit ourselves in the FTX team and believe in their potential in becoming a major player in the crypto derivatives markets."

Binance CFO Wei Zhou added that the Binance squad encourages "positive competition as well every bit partnerships" to help develop new products and services for the manufacture.

Multi-country expansion and diverse offerings

As reported this fall, Binance's recently-launched Bitcoin futures product has performed strongly, hit a $700 million tape in October as other platforms in the crypto spot and derivatives markets saw lackluster activeness.

The commutation launched its United States-based service, Binance.U.s.a., this September and has this month begun testing an iOS app for Binance.U.s.a. users.

As well this calendar month, Binance announced the launch of its fiat gateway for Latin America, start by facilitating the direct purchase of cryptocurrencies using Argentine pesos and Brazilian reals.