The leading provider of global market infrastructure, Cboe (Cboe: CBOE), has made it public that it has completed the acquisition of the Chicago-based crypto exchange, Eris Digital holdings, LLC (ErisX), an operator of a U.S. based digital asset spot market, a regulated futures exchange and a regulated clearinghouse.
Ownership of ErisX allows Cboe to enter the digital asset spot and derivatives marketplaces through a digital-first platform developed with industry partners to focus on robust regulatory compliance, data and transparency.
Both companies are said to have agreed to the deal since last year, and as of writing this, neither of the companies has disclosed the financial terms of the deal. However, the company noted that the purchase price is not material from a financial perspective.
ErisX is positioned to be a long-term leader as regulation is expected to play an increasingly prominent role in digital assets, and Cboe plans to make the early investments necessary to help maximize revenue growth potential over the medium and long term. Cboe anticipates ErisX will reach EBITDA profitability within two to three years, benefiting from a diversified stream of revenue drivers. Henceforth, Cboe will now be able to dive into the digital asset spot and derivatives marketplaces.
Ed Tilly, the Chairman, President, and CEO of Cboe said, “We see enormous potential in the digital asset market and are excited to apply our blueprint of success to this burgeoning asset class.” He furthered by saying, “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.”
Cboe’s interest in the deal was spurred by the regulatory permissions the digital asset platform, ErisX, is achieving in the US. It is a CFTC-registered Designated Contract Market (DCM) and offers clearing services, furthermore, it also offers spot crypto trading services with licenses obtained from regulators in New York and other states in the US.
“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,” said Thomas Chippas, the CEO of ErisX.
As part of the acquisition deal, the CEO of ErisX, together with the rest of the employees will be part of the new parent company, Cboe.
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