Cboe Acquires Crypto Derivatives Exchange ErisX, Betting Big on Booming Digital Asset Space | Currency News | Financial and business news
- Cboe Global Markets is betting on the continued success of cryptocurrencies with its acquisition of ErisX.
- The acquisition will give Cboe exposure to the digital asset and spot derivatives markets, including clearing and settlement.
- The acquisition will allow Cboe to create indices focused on cryptocurrencies.
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Cboe Global Markets is entering the cryptocurrency space with its acquisition of ErisX, a regulated futures exchange and clearinghouse that provides investors with access to cryptocurrency derivatives.
The proposed acquisition, which is expected to be finalized in the first half of 2022, would give Cboe exposure to the burgeoning cryptocurrency market and allow the exchange operator to create indices and other derivatives linked to various cryptocurrencies. currencies.
ErisX was founded in 2018 and operates regulated spot and futures exchanges for digital assets, as well as a real-time clearing system designed to address settlement risk. The company was formed to reduce common industry problems, give institutions easier access to cryptocurrencies, and grow the digital asset market globally.
“As a global provider of market infrastructure, Cboe is uniquely positioned to deliver a digital asset market focused on regulatory compliance and transparency to help institutions embrace the digital asset class and deliver the digital asset class. trading digital assets to their clients, ”the company said.
Following the merger, Cboe will operate the digital assets business under the name Cboe Digital. The company will also form a digital advisory committee made up of various market players to assist in the continued development of the Eris cash and derivatives market.
Committee members will include Fidelity Digital Assets, Galaxy Digital, DRW, Interactive Brokers, Robinhood and Webull, among others. Some committee members intend to acquire a minority stake in Cboe Digital, the company said.
“We believe that our acquisition of ErisX, coupled with broad industry participation and support, will help us bring the regulatory framework, transparency, infrastructure and data solutions of traditional markets to the digital asset space, ”said Ed Tilly, CEO of Cboe.
Terms of the deal were not disclosed, but Cboe said the purchase price was not financially significant. Cboe plans to finance the acquisition with a combination of cash and debt.