Cboe Global Markets doubles down on digital assets with Cboe Digital
(Kitco News) - Cboe Global Markets, Inc. has been looking to expand its digital asset presence and it just revealed the list of firms that intend to become equity investors in its CBOE Digital business.
The list includes some of the most well-known names in the world of trading, such as Robinhood, Virtu Financial, Interactive Brokers, Jane Street, Jump Crypto, Optiver, tastytrade, B2C2, DRW, GSR, IMC and Hidden Road.
This broad list of market participants, which includes leading retail and institutional intermediaries, liquidity providers and brokers, will be entitled to minority equity ownership and "will directly benefit from the growth of ErisX and Cboe Digital and the close strategic and commercial alignment from day one," according to the press release.
Some of the other commercial partner firms that already support ErisX include Fidelity Digital AssetsSM, Galaxy Digital, NYDIG and Webull. Once the deal is finalized, ErisX is expected to be renamed Cboe Digital.
As part of this expanded venture, Cboe plans to form a Digital Advisory Committee comprised of a "cross-section of equity and commercial partner firms."
The committee's goal will be to advise Cboe on the "ongoing development of the ErisX spot and derivatives markets, and more broadly, Cboe Digital and the digital asset space. "
Cboe was judicious with its choice of partners as it looks to leverage the engagement and collaboration with these market participants to "help accelerate the growth of ErisX as a resilient, trusted and transparent digital asset venue."
ErisX, which is an operator of a U.S.-based digital asset spot market, a regulated futures exchange and a regulated clearinghouse, was originally acquired by Cboe on May 2, 2022. It currently operates as a subsidiary of Cboe Global Markets and "serves as the cornerstone of the new Cboe Digital business."
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According to Ed Tilly, Chairman and Chief Executive Officer of Cboe Global Markets, "ErisX was founded with the mission of bringing transparent, well-regulated markets for digital assets and we are excited to further accelerate this vision with growing support from our partner firms."
"Building trusted markets has always been a part of Cboe's DNA, and we look forward to leveraging the combined expertise of our partner firms to help bring Cboe's regulatory framework, transparency, infrastructure and data solutions to further grow the digital asset market on a global scale," Tilly said.
One of the main goals of Cboe Digital is to develop a benchmark data stream to help market participants "evaluate the appropriateness of crypto execution prices" through the utilization of "market data based fundamentally on actionable bid and offer pieces from the spot crypto market."
"With Cboe, ErisX aims to provide a digital asset market rooted in the exchange principles of transparency and regulatory compliance, supported by a network of intermediaries, providing client-driven solutions that help institutions fully embrace this emerging asset class," the press release said.