Leading cryptocurrency exchange Binance has announced its newest acquisition – JEX, a Seychelles-based crypto-asset trading platform that offers spot and derivatives trading services.
The news was communicated in a press release, citing “JEX will join the Binance ecosystem as Binance JEX and focus on further building the crypto-asset derivatives market.”
JEX is a company that specializes in cryptocurrency-related derivatives products such as options and futures contracts. Following the acquisition, the firm will be rebranded as Binance JEX and it will keep its existing team intact. Meanwhile, Binance will introduce more utility to the JEX token and will provide Binance users with additional professional services such as futures contracts, options, and other derivatives products.
It is further noted that in a longer-term, JEX tokens will be distributed gradually to all users through marketing activities as well as community incentives. However, the tokens will be ultimately retrieved and burned in different forms including trading commission deductions.
This new acquisition follows Binance’s continuous interest in the derivatives market. Most recently, the exchange platform has added a new service to its range, specifically margin trading and has shown interest in pursuing offering options and futures trading.
Binance co-founder Yi He has stated that JEX developed solid derivatives product offerings, which are consistent with Binance’s product roadmaps in the crypto-asset derivatives market. He further added:
“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.”
Subsequently, Binance noted that new financial products will launch in September. The exchange platform has also unveiled two futures testnet platforms – Futures A and Futures B –which will allow users to conduct a simulated trading competition. After exploring the platforms, users will be asked to vote for their favorite futures testnet and get the chance to win 10,000 Binance Coin (BNB).
“We think open competition is a great way to test out the products’ usability. Through the competition, we hope to fully review the two products in terms of market feedback, scalability, and liquidation model design. It’ll help with the ultimate decision making,” said a Binance spokesperson.
The spokesperson further explained that the exchange aims to address current common issues afflicting the market, such as high latency, overloads, and poor risk-control mechanisms, which are reportedly some of the problems faced by BitMEX.
Meanwhile, just last week it had been reported that Binance CEO Changpeng Zhao announced that the platform was planning to launch futures trading this month. Two days prior to this, the exchange had announced the launch of its first crypto lending product, allowing users to earn interest from Binance Coin (BNB), Tether (USDT) and Ethereum Classic (ETC).