OVEX, a South African exchange, has closed a strategic investment from Alameda Research, the company behind FTX.
The Cape Town-based crypto exchange platform specializes in Over-The-Counter (OTC) and arbitrage trading and offers one of South Africa’s largest selection of digital assets.
OVEX offers up to 26 cryptocurrencies and ZAR deposits. It also offers unique investment opportunities to retail, accredited, and institutional investors.
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Speaking about the investment, Sam Bankman-Fried, CEO, FTX and Alameda Research, said:
“I’m excited about our strategic investment in OVEX, Africa’s leading OTC desk.
Crypto may have a big impact on the future of Africa, and I’m looking forward to seeing where it goes.”
– CEO, FTX
The OVEX exchange key offerings include:
- OTC Desk – Offers high net-worth individuals and institutions a personalized and private trading service with an extended credit line
- Bitcoin Arbitrage – Eanbles investors to earn arbitrage-trading profits on the USD and ZAR bitcoin price discrepancies
- Interest – Enables account holders to deposit their crypto into an interest-based account with a 4% annual interest
OVEX’s 30-day OTC trading volume is over 4 billion Rand (over $270 million). The exchange also allows its customers to earn via its OVEX Arbitrage Service that exploits mismatches in the price of Bitcoin in USD and South African Rands (ZAR).
The product offers its clients:
- 24hrs trading
- Zero trading losses
- Low 1% fee
In order to offer the above services and for its clients to earn arbitrage trading profits, the exchange calculates the average premium and a set duration, say 4 weeks, and then estimates the arbitrage profits from a set investment amount.
According to OVEX, over the past 4 years, BTC/ZAR markets have traded at an average premium of 4.6% to BTC/USD markets which allows the exchange to give such estimates.
Speaking about the investment, CEO, OVEX exchange, said:
“Operating out of one of the continent’s leading cryptocurrency markets in South Africa, OVEX understands the value of digital assets in its economic climate and the novel financial opportunities the platform can offer to both retail and institutional investors.
“With support and funding from FTX, we are committed to improving market efficiency in South Africa and the wider continent, empowering people here to get the access they deserve in a decentralized ecosystem.”
– CEO, OVEX
This recent investment by FTX comes as no surprise. FTX, which happens to be the most liquid exchange in the world, has been focused on expanding its African footprint and building a trading community on the continent.
The exchange provides liquidity to other bigger exchanges like Binance and BitMex. The addition of an African exchange onto the list will no doubt position the exchange more strategically on the continent.
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RECOMMENDED READING: FTX Becomes First Crypto Exchange to Offer Bitcoin Trading Pairs for Tesla, Amazon, Netflix, Apple, Google, and Facebook Stocks
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