IG’s tastyworks, Interactive Brokers, Robinhood, among 13 investor partners of Cboe Digital

Rick Steves

Cboe has completed the syndication of minority equity interests with a group of thirteen firms becoming investor partners in the Cboe Digital business. The list of investors include retail and institutional intermediaries, liquidity providers, and brokers. 

Cboe Digital partners include B2C2, DRW, Galaxy Digital, GSR, Hidden Road, IMC, Interactive Brokers, Jane Street, Jump Crypto, Robinhood, Susquehanna International Group, tastyworks, and Virtu Financial.

Their equity ownership will allow them to directly benefit from the growth of Cboe Digital and close strategic and commercial alignment. Investor partners join a roster of commercial partner firms supporting the Cboe Digital business.

Regulatory-first approach to the digital asset space

John Palmer, President of Cboe Digital, said: “We are pleased to have this group of investor partners joining us as equity owners of Cboe Digital, with many of them already fully onboarded to the Cboe Digital platform and the remainder expected to be completed in the coming months. Each of these partners share Cboe’s deep commitment to bringing a trusted, regulatory-first approach to the digital asset space. The time is right for the Cboe Digital model in the digital asset space, and we look forward to leveraging the combined expertise of these firms as we work together to grow, shape and define this asset class to benefit market participants across the globe.”

John Deters, Chief Strategy Officer, Cboe Global Markets, commented: “Cboe Digital’s foundation is based on the core tenets of a trusted financial exchange – transparency, regulatory oversight, and customer protection – underpinned by responsible innovation and the value of an intermediary-driven model. Together with our partner firms, we will look to explore opportunities across digitization, including discovering new areas of tradable products specific to managing digital asset risk, building new digital technology in a safe and compliant way, and helping craft the future of digital assets with proven market expertise and regulatory experience, which we believe will help the space mature and ultimately grow.”

Cboe also plans to form a Digital Advisory Committee comprised of a cross-section of investor and commercial partner firms, which will be tasked with advising on the ongoing development of the Cboe Digital spot and derivatives markets, and more broadly, the digital asset space.

Cboe Digital plans to develop range of data products

Cboe Digital operates a spot market, derivatives market, and clearing platform, with plans to develop and distribute a range of digital asset data products, subject to regulatory approval.

Cboe’s digital asset division was known as ErisX before being acquired by the derivatives exchange giant and later rebranded to the current name.

The firm uses market data based fundamentally on actionable bid and offer prices from the spot crypto market. It intends to develop a benchmark data stream to help market participants evaluate the appropriateness of crypto execution prices.

Rooted in the exchange principles of transparency and regulatory compliance, Cboe Digital’s digital asset market will be supported by a network of intermediaries, providing client-driven solutions that help institutions fully embrace this emerging asset class.

Cboe says it believes that meeting the demand for trading digital assets with the advantages of exchange trading is beneficial for all investors, and intermediaries have a key role to play in the ongoing development of Cboe Digital spot and derivatives markets.

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