Cryptocurrency exchange Binance has acquired China-based Jaxx spot and derivates platform Jaxx for an undisclosed amount.
Binance Continues to Grow
The Malta firm announced today that JEX is rebranding to Binance JEX, adding that the acquisition would grant them the rights to manage JEX tokens, the native cryptocurrency of the JEX platform. Excerpts:
In a longer term, JEX tokens will be gradually distributed to all users via marketing activities and community incentives; subsequently, the tokens will be gradually retrieved and burned in various forms including trading commission deductions and so on.
Binance JEX will, for now, maintain all the existing services of the acquired platform, which includes spot trading facilities for 21 cryptocurrencies, including bitcoin, EOS, Ether, and Binance’s native asset BNB. Meanwhile, Binance JEX would also inherit JEX’s crypto derivatives solutions as a part of the acquisition. The move would enable the amalgamated entity to offer margined bitcoin futures contracts.
Propelling Bitcoin Derivatives
The announcement from the leading crypto exchange closely followed its July announcement of building a derivatives platform that would feature perpetual swaps. The exchange said last week that it is going to go ahead with its plan in September, which later saw it launching two new trading platforms for testing today.
“JEX has a seasoned developer team with proven experience in cryptoasset product development,” said Binance co-founder Yi He, adding that their derivatives product offering aligns accurately with the company’s product roadmaps in the bitcoin derivatives market.
We hold an open mind and welcome more partners to join the Binance ecosystem,” Yi told Finance Magnates. We look forward to delivering more innovative derivative products in the future as Binance JEX.
The announcement also put Binance in the race of crypto derivatives dominance. Soon after BitMEX, one of the world’s leading bitcoin derivatives platforms, landed itself in controversy concerning its insufficient matching engine and an alleged regulatory probe by the Commodity Futures Trading Commission, similar services started brewing up as competition. Bitsian CTO Steven Brucato said Binance’s derivative platform would solve the issues concerning matching engine.
“The Binance market should not have this problem due to 1) a higher capacity match engine and 2) rate limits on the API that prevent this from happening,” he said in a press statement.
What do you think of Binance’s new entrance into the crypto futures market? Add your thoughts below!
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