By
Chimamanda U. Martha
May 14th, 2024
More partners including retail order flow providers, the largest market makers in the spot crypto industry, and other market makers that focus on derivatives pricing and trading are expected to join.
Months after announcing the acquisition of ErisX, CBOE Global Market has lined up several equity partners to grow its digital asset business. It is worth noting that its recent ErisX acquisition was a huge step to entering the digital asset spot and derivatives marketplaces. According to reports, it seeks to rebrand ErisX to CBOE Digital. It is reported that each of its new planned partners could get a minority stake in the company, though the specific size was not revealed. The partners are:
“B2C2, DRW, GSR, Hidden Road, IMC, Interactive Brokers, Jane Street, Jump Crypto, Optiver, Robinhood, tastytrade, and Virtu Financial.”
Also, an advisory committee comprising the partner firms would be formed. It is important to note that the company has previously announced “Fidelity Digital Assets, Galaxy Digital, NYDIG, and Webull” as part of the partners.
According to Cboe Chief Strategy Officer John Deters, more partners including retail order flow providers, the largest market makers in the spot crypto industry, and other market makers that focus on derivatives pricing and trading are expected to join. It is also building out its crypto spot and futures capabilities to fill “a massive gap”.
“We very intentionally established a diverse group of partners. It’s that kind of mix which creates, we think, an ideal and healthy blend of participants, each with a little bit different focus and coming together simultaneously to make a vibrant and liquid market,” said Deters.
ErisX is known for offering spot trading on BTC, ETH, LTC, BCH, and USD Coin. For now, it wants to secure a license from CFTC to trade margin-based futures contracts. This is expected to be done by the end of the year. In addition to the five digital assets offered, the company seeks to offer additional futures contracts and spot trading for tokens in 2023 and 2024. Deters did not disclose the specific tokens. However, he mentioned that they are considering top-traded assets.
Deters in a statement revealed that CBOE is going digital in the long-term, so it is planning its platform for the future. In this case, their clients and market participants would be provided with opportunities for digital interactions with their product.