Global exchange operator Cboe Global Markets, Inc. (which owns the Chicago Board Options Exchange) has announced that it has entered into an agreement to buy Eris Digital Holdings, LLC (ErisX), which “operates a U.S. based digital asset spot market, a regulated futures exchange and a regulated clearing house.”
In a joint press release, the two companies mentioned that buying ErisX, which was founded in 2018, allows Cboe to “enter the digital asset spot and derivatives marketplaces through a digital-first platform developed with industry partners to focus on robust regulatory compliance, data and transparency.”
Cboe says that it aims to operate the crypto part of ErisX as Cboe Digital. It also mentions that it has “the support of a broad range of market participants, including well-established retail brokers, crypto-leading firms and sell-side banks, who are expected to form a Digital Advisory Committee tasked with advising Cboe on the ongoing development of the Eris spot and derivatives markets.”
It is also worth noting that Cboe Digital “intends to develop and distribute digital asset indices for potential use in ETP creation and other derivative product opportunities.”
Ed Tilly, Chairman, President and CEO of Cboe Global Markets, said:
“We believe our acquisition of ErisX, coupled with broad industry participation and support, will help us bring the regulatory framework, transparency, infrastructure and data solutions of traditional markets to the digital asset space.
“ErisX has shown an unwavering commitment to improving spot and derivatives crypto trading, and I am confident that together we can not only meet the growing demand for institutional and retail trading solutions but also push the boundaries of digital asset innovation and unlock its next phase of growth.“
As for Thomas Chippas, CEO of ErisX, he stated:
“Derivatives are an essential component of a scaled digital marketplace, and Cboe, as one of the world’s largest derivatives exchange operators, has the global customer network, international operations and innovative vision to not only grow ErisX, but the entire digital asset space.
“With Cboe’s support and network of industry partners, ErisX will enable new and established firms to compliantly and confidently offer cryptocurrency spot and derivative products to their clients, making our transparent and trusted digital asset market the destination of choice for any market participant offering crypto spot or derivative trading services now and in the future.“
Chris Isaacson, Executive Vice President and Chief Operating Officer of Cboe, had this to say:
“Cboe’s entry into the digital asset space is directly consistent with our purpose to operate trusted, inclusive global markets that enable participants to define a sustainable financial future. With ErisX, in a single step, Cboe is able to enter the digital asset spot, data, derivatives, and clearing ecosystem.
“Now is the right time to fully embrace and help define this emerging asset class, and Thomas along with the ErisX management team of finance and technology veterans, are the right team to help us bring the benefits, structure and transparency of our trusted markets to the digital asset space.“
This deal is expected to complete in H1 2022 (“ubject to regulatory approvals and other customary closing conditions”).
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.