Cboe Global Markets, a provider of global market infrastructure and tradable products, announced that it has reached a definitive agreement to acquire ErisX U.S. digital asset spot market, Regulated futures exchanges and regulated clearing houses.
The ownership of ErisX provides Cboe with a unique opportunity to enter the digital asset spot and derivatives market through a digital-first platform co-developed with industry partners, focusing on strong regulatory compliance, data, and transparency.
Was established in 2018, ErisX design And put compliance and operational integrity first. Its spot and futures exchanges utilize high-performance infrastructure and real-time market monitoring. Its real-time clearing system is designed to address settlement risks, and collateral management helps seamlessly transfer collateral between spot and futures accounts.
As a global market infrastructure provider, Cboe has a unique advantage in providing a digital asset market focused on regulatory compliance and transparency to help institutions accept digital asset classes and provide digital asset transactions to their customers.
Cboe plans to operate digital asset business under the name of Cboe Digital. The company has also received support from a wide range of market participants, including mature retail brokers, leading crypto companies, and seller banks. They are expected to form a digital advisory committee responsible for providing advice on the continued development of Cboe’s Eris spot and derivatives markets.
As members of the Digital Advisory Committee, DRW, Fidelity Digital Assets, Galaxy Digital, Interactive Brokers, NYDIG, Paxos, Robinhood, Virtu Financial and Webull are committed to continuing cooperation with Cboe Digital Market. Certain members of the aforementioned Digital Advisory Committee also intend to acquire a minority stake in Cboe Digital and serve as partners for business growth. Cboe Digital will use the participation and cooperation with these market participants to continue to operate ErisX as a flexible, credible and transparent digital asset venue.
Thomas Chippas, CEO of ErisX, said: “Derivatives are an important part of the large-scale digital market. As one of the world’s largest derivatives exchange operators, Cboe has a global customer network, international operations and innovative vision. The growth of ErisX is the entire digital asset space. With the support of Cboe and the network of industry partners, ErisX will enable new and existing companies to provide cryptocurrency spot and derivative products to their customers compliantly and confidently, making us transparent and trustworthy digital The asset market has become the preferred destination for any market participant that provides crypto spot or cryptocurrency. Derivatives trading services now and in the future.”
Cboe plans to use its real-time, risk and derivative data expertise and global network to provide a transparent view of the digital asset market and transaction execution. Using digital asset data from ErisX and Cboe’s existing index calculation capabilities, Cboe Digital intends to develop and distribute digital asset indexes for potential use in ETP creation and other derivative product opportunities.
Ed Tilly, Chairman, President and CEO of Cboe Global Markets, said: “We believe that our acquisition of ErisX, coupled with extensive industry participation and support, will help us integrate the regulatory framework, transparency, infrastructure and data of traditional markets. The solution is brought to the digital asset space. ErisX is unswervingly committed to improving the crypto trading of spot and derivatives. I believe that we can not only meet the growing demand for institutional and retail trading solutions, but also break through the boundaries of digital asset innovation and Start its next phase of growth.”
Cboe also plans to use the Digital Advisory Committee to provide advice and guidance on the development of market data products based on operable bids and quotations in the ErisX spot encryption market. This market data product is expected to be modeled on established best execution practices in other asset classes, and ultimately aims to develop a benchmark to help Cboe Digital’s industry partners and other market participants evaluate the appropriateness of crypto execution prices.