The world’s largest cryptocurrency exchange has carried out what several people are calling a win-win investment.
It has invested an undisclosed amount in the fast-rising crypto derivative platform FTX. This is according to an official blog post by Binance on December 20, 2019.
Founder and CEO of FTX, Sam Bankman-Fried believes the partnership will positively affect FTX. He said: “The investment will help accelerate the growth of FTX with support and strategic advisory from Binance.” FTX, on the other hand, will still solely be in charge of its operations.
Founded in 2019, FTX is the brainchild of Alameda Research, a digital asset research firm. Situated in the Caribbean islands of Antigua and Barbuda, FTX provides four different types of trading. OTC, futures, indexes and spot trading. According to reports, the exchange has a daily trade volume of about $1.5 billion.
The firm will help in creating products, especially for Binance.com, also developing Binance over-the-counter (OTC) trading desk.
As a result of this partnership, FTX is sure to enjoy a boost in growth and also widespread adoption. Though Binance only made a minor investment on FTX, it, however, has a long term hold on its native token FTT.
Speaking on the investment, Founder and CEO of Binance, Changpeng Zhao, CZ, pointed out the remarkable growth going on in the FTX ecosystem. Also adding that: “The FTX team has built an innovative crypto trading platform with stunning growth. […] We believe in their potential in becoming a major player in the crypto derivatives markets.”
CZ also praised the unique talent and professionalism of the FTX expert team of traders. The exchange is more than confident that it is on the right path.
Binance expansion and multi-partnership
Just last month, Binance obtained one of Indian’s most powerful exchange, WazirX. Allowing Indian users to carry out INR trades on the platform.
Binance CFO, Wei Zhou mentioned that the exchange is always on the lookout for new and better ways to improve its services. This is in a bid to attract more users to its platform.
Also adding that “both the acquisition and investment with FTX are ways to make sure Binance stays at the top of its game.”
The firm also recently announced the launch of a fiat gateway for Latin America.