The leading cryptocurrency exchange in the world by trading volume, Binance, has just acquired derivatives specialist JEX. It will run its derivative products such as margin and futures trading.
Binance has just made a major purchase which confirms it is moving headfirst into the derivatives trading market for cryptocurrency. JEX, a Chinese company, specializes in cryptocurrency-related derivatives products such as options and futures contracts. According to reports, it will be rebranded as ‘Binance JEX’ and its existing team will stay intact.
With the acquisition, it seems that Binance as officially jumped in the ‘arms race’ in the crypto-derivatives market. Binance announced margin trading this summer and has since been eying also offering options and futures trading. It seems that JEX will make this happen.
According to the exchange, new financial products will launch in September. Two trading platforms are expected then which will be available to the public for testing.
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With Binance DEX being out for much of the year, Binance is still trying to expand its trading options. It seems that its decentralized path may have to be put on hold, however, until the details of its derivatives trading sector are further fleshed out. The release of Binance US will also expectedly cause some turbulence within the company which is already in the processing of changing-up and segmenting management for its American division.
With Americans making up some 40% of traffic on Binance, the exchange is now forced to offer new financial products to further take the traffic from competing exchanges. The main competitor seems to be BitMEX, however many other exchanges now also offer crypto-derivatives.
By all estimates, it does not seem like Binance is too late in the race—and JEX will surely give the exchange an edge.
Do you believe Binance can eat up a large portion of derivatives trading in the cryptocurrency market? Let us know your thoughts below in the comments.
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Anton Lucian
Raised in the U.S, Lucian graduated with a BA in economic history. An accomplished freelance journalist, he specializes in writing about the cryptocurrency space and the digital '4th industrial revolution' we find ourselves in.
Raised in the U.S, Lucian graduated with a BA in economic history. An accomplished freelance journalist, he specializes in writing about the cryptocurrency space and the digital '4th industrial revolution' we find ourselves in.
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