As part of its continued efforts to further boost the global crypto derivatives ecosystem, the world’s largest cryptocurrency exchange, Binance has made a strategic investment in crypto derivatives exchange platform, FTX. 

According to a Bloomberg report today, the invested sum was undisclosed, but FTX noted that the investment was “tens of millions,” while adding that the value is a fraction of the “hundreds of millions of dollars” capital the firm started with in May. 

Commenting on the development, Binance CEO Changpeng Zhao was quoted as saying in the report:

The derivatives space for crypto is very new, and we want to support multiple initiatives to grow the industry.

As per the report, since FTX entrance into the crypto derivative industry earlier this year, the firm had recorded massive growth, including processing about $500 million worth of transactions daily, thus making it the seventh-largest Bitcoin Futures exchange in the world.

In addition to the investment, Bloomberg noted that Binance and FTX affiliate Alameda Research, a quantitative trading firm and crypto liquidity provider, would work more closely in the future, to help the Malta-based exchange provide liquidity across its platform. 

Sam Bankman Fried, FTX founder and CEO of the Alameda research told Bloomberg in a telephone interview that Binance is the first Malta-based crypto exchange to partner with them while noting that both firms would further partner on several projects, including tokenizing and listing assets. 

“As we think down the road about a number of tokenizing projects that FTX is developing, having Binance as a partner will be super powerful,” Bankman Fried added. 

Binance has already ventured into crypto derivatives with the launch of its Bitcoin Futures product earlier this year. Since its launch, the exchange 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. 

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