Binance Boosts its Derivatives Offerings With a New Acquisition
- Binance has acquired trading platform JEX in order to provide its users with services such as futures contracts, options and other derivative products.
- The already existing JEX tokens will eventually be retrieved and burned in various forms, including trading commission deductions.
Binance, one of the largest crypto exchanges, has acquired JEX, a Seychelles-registered trading platform that offers spot and derivatives trading in cryptocurrencies, the company announced on 2 September.
According to the announcement, the acquisition was made in order for Binance to boost its crypto-asset derivatives market, and provide its users with “professional services including futures contracts, options and other derivative products”. Yi He, Binance’s co-founder, has reportedly stated that the JEX team has created a “solid derivatives product offerings”, which aligns with Binance’s product roadmap in the crypto-asset derivative market, further claiming that:
“We hold an open mind and welcome more partners to join the Binance ecosystem. We look forward to delivering more innovative derivative products in the future as Binance JEX.”
JEX was already offering its own token before the acquisition, which holds the same name as the platform. According to Monday’s announcement, JEX tokens will first be distributed to users through “marketing activities and community incentives”, but will eventually be retrieved and burned in “various forms including trading commission deductions and so on”.
On Monday, Binance also announced that it has launched two new crypto futures platforms for user testing, allowing its users to play around with dummy assets. At the end of last month, Binance also announced the launch of its cryptocurrency lending business, which will offer up to 15% annualized interest on assets, starting with BNB, USDT, and ETC.
- The popular crypto exchange has decided to sell its business in Russia to CommEX, a crypto exchange business that was officially launched on Tuesday.
- Binance noted that it will fully exit the Russian market, and have no ongoing revenue split or any option to buy back shares in the business.
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- The company said it will be suspending its crypto-backed debit card service in the Middle East on 25 August, and in Latin America by 21 September.
- Although no reason was given for the decision, the company noted that “less than 1% of users” in those regions will be affected by the change.
- A spokesperson said the change was due to the “changing market and user needs”, and that Binance will now be refocusing its resources on its main products and long-term goals.
- Launched in March 2022, Binance Connect helped crypto businesses connect with the traditional finance system, and supported 50 cryptocurrencies and networks such as Visa and Mastercard.