Arkham Intelligence to Launch Derivatives Exchange: Reports

On-chain analytics firm Arkham Intelligence is reportedly launching a new derivatives exchange. This exchange launch will involve an international relocation to the Dominican Republic and a funding search for $100 million.

Arkham is taking a bold step, which aims to take market share from weakened industry leaders.

Arkham’s Derivatives Plan

Arkham Intelligence, the on-chain analytics firm, is launching its own derivatives exchange, according to a report from Bloomberg. Bloomberg’s report was sourced from an anonymous employee; no spokesperson responded to requests for comment, and neither Arkham’s website nor social media have posted on the subject yet.

Arkham Intelligence maintains a strong reputation in crypto analytics, with many sophisticated discoveries under its belt. The firm enjoys many high-level investors, such as OpenAI founder Sam Altman and a major Binance investment less than a year ago. Arkham has a native token, ARKM, but a new derivatives exchange seems to be a deviation from the current model.

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The crypto derivatives market is wildly lucrative. Roughly 71% of the total crypto trading volume on exchanges is in the derivatives market, worth over $3 trillion in September alone. Arkham may have identified a possible opportunity to break in and found it credible:

“Arkham is seeking to capture a… slice of the cryptocurrency market, which has undergone significant changes since… regulatory actions against Binance and the high-profile collapse of its former competitor FTX. While crypto derivatives trading is still dominated by Binance, its market share has declined to its lowest in four years,” Bloomberg quoted.

In other words, Arkham sees a real chance to carve a juicy piece out of its potential competitors. According to the report, it has also been quietly developing the exchange’s software for the past year and is seeking $100 million in new funding.

To prepare for this launch, the firm will relocate from London and New York to the Dominican Republic. This is because it aims to seek a free-trade zone license, tax exemptions, and other financial benefits. The Dominican Republic has already been a destination for international users seeking exchange access, and this move seems no different.

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However, US-based users will be unable to access this new platform. Further official announcements from the firm might shed more light on this development.