Cboe completes acquisition of ErisX in giant leap for Crypto industry

Rick Steves

“We can leverage the regulatory framework, transparency, infrastructure and data solutions of those trusted markets to further mature and expand digital asset trading and clearing for a broader user base.”

Cboe Global Markets has completed the acquisition of Eris Digital Holdings, LLC, which operates ErisX, a U.S. based digital asset spot market, a regulated futures exchange and a regulated clearinghouse.

The acquisition, first announced in October 2021, allows Cboe to enter the digital asset spot and derivatives marketplaces as it plans to operate the ErisX business as a subsidiary with chief executive Thomas Chippas remaining as head of the digital asset business, reporting to Chris Isaacson, Executive Vice President and Chief Operating Officer of Cboe.

Cboe will go beyond operating the existing spot, derivative and clearing platforms, as the provider of market infrastructure and trading products plans to develop and distribute a range of digital asset data products, including a benchmark data stream to help market participants evaluate the appropriateness of crypto execution prices.

Bringing regulatory framework and transparency to crypto

Ed Tilly, Chairman, President and Chief Executive Officer of Cboe Global Markets, said: “Adding ErisX to the Cboe network is another exciting chapter in Cboe’s growth story. We see enormous potential in the digital asset market and are excited to apply our blueprint of success to this burgeoning asset class. Tom Chippas and the entire ErisX team have made significant progress bringing the regulatory framework and transparency of traditional markets to the digital asset space, and I look forward to working together, with our industry partners, to grow the digital asset market on a global scale.”

Thomas Chippas, Chief Executive Officer of ErisX, commented: “I am incredibly proud of the ErisX team for their relentless pursuit of innovation in the digital asset space. From the beginning, our vision was to advance the digital asset spot, data, derivatives and clearing ecosystem by making regulatory compliance and operational integrity the foundation of the ErisX business. I couldn’t be more excited for the future as we join forces with Cboe and our industry partners to leverage their collective market expertise and global resources to not only grow ErisX, but also to develop global regulatory and compliance standards that have a lasting impact on the entire digital asset space.”

Chris Isaacson, Executive Vice President and Chief Operating Officer of Cboe Global Markets, added: “Increased retail participation has fueled record trading across equities, derivatives and digital assets, demonstrating how investors of all types want access to sustainable financial solutions. Cboe is uniquely positioned to help the growing segment of retail investors access traditional and new financial markets through product innovation, education and collaboration with our industry partners and intermediaries—and now we can leverage the regulatory framework, transparency, infrastructure and data solutions of those trusted markets to further mature and expand digital asset trading and clearing for a broader user base.”

Under Cboe’s wing, ErisX will root its digital asset market rooted in the exchange principles of transparency and regulatory compliance. Cboe will ensure a regulated derivatives market and central clearing to help mitigate counterparty risk, efficient price formation, additional hedging tools, enhanced transparency, and deeper liquidity.

Terms of the deal were not disclosed.

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