Arkham to launch derivatives exchange, aims to compete with Binance

Arkham Intelligence, a blockchain data tracking platform, is set to launch a crypto derivatives exchange next month, according to a Bloomberg report.

“The exchange will be aimed at retail investors and seek to compete with platforms such as the world’s largest crypto exchange Binance,” said Bloomberg citing a person familiar with the initiative.

Arkham’s new derivatives platform, which will cater to its 880,000 monthly active users, aims to target retail investors and compete with industry giants like Binance. However, the platform will not be accessible to US customers due to regulatory restrictions.

The company, backed by OpenAI founder Sam Altman, is relocating to the Dominican Republic, aiming to take advantage of the country’s free-trade zone and favorable tax policies.

According to sources familiar with the company’s plans, Arkham has spent the last year building the exchange’s technology. This marks a pivotal moment as the firm seeks to carve out market share in the growing derivatives sector, which accounted for 71% of crypto market activity in September, reaching $3.07 trillion in trading volume.

Despite regulatory actions diminishing Binance’s market dominance, other players like Bybit and OKX remain significant contenders. Arkham’s challenge will be tapping into the lucrative market while sidestepping legal hurdles.

In addition to its trading platform, Arkham has focused on marketing efforts, including a €1.8 million sponsorship deal with the Turkish football club Galatasaray, further boosting its brand visibility. As the exchange prepares to go live, Arkham is reportedly raising $100 million from Middle Eastern investors to scale the venture.