JEX, a Seychelles-based crypto exchange, that offers spot and derivatives (including options and futures) trading in cryptocurrencies such as bitcoin and ether, has been acquired by Binance, the world’s largest crypto exchange by volume.
As part of the deal, JEX has been rebranded to Binance JEX, and will offer derivatives products, including futures, options, and perpetual contracts.
Binance has been looking to offer pro traders crypto derivatives offerings and this new acquisition is expected to boost the company’s crypto assets derivatives offerings.
JEX offers its own token, also called JEX, which will remain in place, according to Binance. These tokens will continue to be distributed through community incentives and marketing activities. Ultimately, Binance intends to burn these tokens.
Speaking on the acquisition, Binance co-founder, Yi He, said:
“JEX has a seasoned developer team with proven experience in crypto-assets product development. JEX has developed solid derivatives product offerings including perpetual contracts and options, which are aligned with Binance’s product roadmaps in the cryptoasset derivatives market.”
The JEX Exchange has been renamed to Binance JEXThe crypto derivatives marketplace is a highly competitive space with established brands such as Deribit and BitMEX having seen their volumes continue to grow in recent months. BitMEX’s insurance fund is reportedly up by 50% since the beginning of 2019. Meanwhile, Deribit dominates around 95% of the total cryptocurrency options market.
The JEX acquisition is not the first African investment that the company has made. In 2018, it opened the first Binance fiat-crypto exchange in Uganda.
Recently, Binance has added to its portfolio of offerings by launching crypto lending services and Bitcoin futures trading contracts which are both expected to attract new customers and retain existing ones.
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