Leading U.S-based derivatives exchange, Cboe Global Markets has announced the acquisition of Chicago-based crypto exchange ErisX Digital Holdings. Following the completion of the deal, CBOE will be strategically placed to enter the digital asset spot and derivatives market space. The acquisition deal was made in October last year.

President and Chief Executive Officer of CBOE Ed Tilly commented on the acquisition. He stated that there is great potential in the digital asset marketplace. Tilly added that the CBOE team is excited about the new opportunity to apply its “blueprint of success to this burgeoning asset class.”

CBOE Sets to Expand After Through ErisX’s Regulatory Approval

Chief Executive Officer of ErisX, Thomas Chippas, also commented on the acquisition. He noted that the company’s vision has always been to advance the derivatives, data, clearing system, and digital asset spot. To do this, the company has always strived to make operational integrity and regulatory compliance the foundation of the ErisX business.

CBOE’s interest and acquisition of ErisX were a result of the regulatory approvals the company has achieved in the U.S. It provides spot crypto trading services with approval from regulators in New York and some other US states.

Additionally, the digital asset platform provides clearing services as a Derivatives Clearing Organization (DCO) while being a CFTC-certified Designated Contract Market (DCM).

All ErisX Employees Are Now Part Of CBOE

The acquisition deal also means that the board of ErisX and the rest of the employees will become part of the new parent company.

However, the financial terms of the deal were not disclosed, but they noted that the actual purchase price was not influenced by the financial aspect. Rather, both parties prioritized ErisX’s regulated position in the market as well as the company’s potential growth.

Additionally, CBOE has started seeing positive signs that the new subsidiary will have the right environment to flourish and expand. The company anticipates that ErisX will have profitable EBITDA in the next two years, with more yields expected from its diversified revenue streams.