Cboe Digital Welcomes Equity Investors In Exchange For Minority Stakes

08/26/2022

2 minutes read

2022.08.26 13:17

Cboe Global Markets -one of the largest U.S. equities market operators- has announced plans to welcome equity partners for its digital assets trading business via Cboe Digital Business. According to the company, equity partners are expected to receive a minority ownership stake.

Furthermore, Cboe revealed that the initial group of firms that intend to become equity investors in the Cboe Digital business – which include B2C2, DRW, GSR, Hidden Road, IMC, Interactive Brokers (NASDAQ:IBKR), Jane Street, Jump Crypto, Optiver, Robinhood (NASDAQ:HOOD), tastytrade and Virtu Financial (NASDAQ:VIRT). The partnerships expected to be finalized in the coming weeks

B2C2 has already confirmed investing in Chloe, via a tweet that said, “Pleased to be partnering with @CBOE, @ErisX_Digital, and other major market participants to help build the ecosystem of the future!”

“Through their equity ownership, each firm will directly benefit from the growth of ErisX and Cboe Digital and the close strategic and commercial alignment from day one,” said Cboe.
Cboe also said that it plans to form a digital advisory committee comprised of a cross-section of equity and commercial partner firms. The committee will be tasked with advising Cboe on the ongoing development of the ErisX spot and derivatives markets, and more broadly, Cboe Digital and the digital asset space.

Eris Digital Was Recently Acquired By Cboe

In May 2022, Cboe acquired ErisX business, operator of a U.S. based digital asset spot market, a regulated futures exchange, and a regulated clearinghouse. ErisX business, which is expected to be renamed Cboe Digital, includes Fidelity Digital AssetsSM, Galaxy Digital, NYDIG, and Webull, among others.

ErisX tweeted about the planned equity partners for ErisX/Cboe digital business too.

Cboe Global Markets (NYSE:CBOE) Announces Planned Equity Partners for ErisX/Cboe Digital Businesshttps://t.co/CIbBRaOCK4

— ErisX_Digital (@ErisX_Digital) August 25, 2022

Commenting on the acquisition, John Palmer, president of ErisX said “We are gratified to have the support of such a tremendous group of industry leaders, which we believe is further validation of our vision for the Cboe Digital business.

Palmer talked about bringing Cboe’s trusted, transparent, regulatory-first approach to the digital asset space. Cboe and ErisX are ready to work together as a collective force to shape and define the digital asset class now, and for the future, to benefit all market participants.

Ed Tilly, chairman and CEO of Cboe Global Markets commented, “ErisX was founded with the mission of bringing transparent, well-regulated markets for digital assets and we are excited to further accelerate on this vision with growing support from our partner firms.”

Tilly said that the company is looking forward to leveraging the combined expertise of the partner firms to help bring Cboe’s regulatory framework, transparency, infrastructure and data solutions to further grow the digital asset market on a global scale.

On the Flipside

Touted investor Robinhood laid off 23% of its staff, at roughly 780 employees, early this month. The job cut followed a 44% decline in overall revenue for the company, slumping trade activity, and a Q2 net loss of $295 million.

Why You Should Care

Cboe said that the planned commercial partner firms will see progress along with the development of ErisX and Cboe Digital markets.

John Deters, executive vice president and chief strategy officer at Cboe said, “We think the future crypto is enormous, I think we’re only seeing a small fraction of what it could be.”