In Brief:
- Cboe will soon acquire ErisX to enter the digital asset space.
- The aim is to build its hold on the digital asset spot and derivatives market.
- The deal is expected to be completed in the first half of 2022.
Cboe, a global market infrastructure, agreed that it is all set to acquire Eris Digital Holdings, LLC (ErisX). ErisX is a Derivatives Clearing Organization (DCO), focused on digital assets since 2017.
Cboe’s ownership of ErisX can give the company a swift entry to the digital asset spot and derivatives markets, such as clearing and settlement. The deal is expected to close in the first half of 2022, pending regulatory approvals.
The agreement between Cboe and ErisX will also provide an opportunity to build extensive digital asset market data offering, create indices and explore more derivatives products.
Cboe is also planning to develop an industry standard-setting platform with the help of the Digital Advisory Committee of industry participants.
The committee includes well-established retail brokers, crypto-leading firms, and sell-side banks, as its market participants. Firms that came forward as supporting participants to form this committee are – DRW, Fidelity Digital Assets, Galaxy Digital, Interactive Brokers, NYDIG, Paxos, Robinhood, Virtu Financial, and Webull.
Doug Cifu, Co-founder and CEO of Virtu Financial along with Co-founder and CEO of NYDIG, Robert Gutmann showed their excitement by stating that NYDIG is proud to partner with Cboe and ErisX.
Tom Jessop, President of Fidelity Digital assets also agreed that the Cboe-ErisX collaboration can bring increased regulatory proficiency, innovative technology, and product specialization to digital asset markets.
All the members of the Digital advisory committee showed their appreciation for Cbeo’s step to enter into the digital asset space.
Damien Vanderwilt, Co-President and Head of Global Markets of Galaxy Digital (TSX: GLXY), and Matthew McDermott, Global Head of Digital Assets at Goldman Sachs, also joined in to support this Cboe-ErisX partnership.
Cboe will soon operate the digital asset business as Cboe Digital. The company’s Executive Vice President and Chief Operating Officer of Cboe, Chris Isaacson, said: “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.”
He added, “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.”
Many firms are on their way to exploring digital assets space. Recently, Tokens.com acquired 50% stakes in Metaverse Group. Also, in August this year, FTX.US announced the purchase of LedgerX, a crypto derivatives exchange. These acquisitions aimed to broaden the scope of digital assets globally.
