Arkham Intelligence Inc., a blockchain-based data analytics provider backed by notable investors such as OpenAI founder Sam Altman, is preparing to launch a crypto derivatives exchange next month. This new venture will target retail investors and operate out of Punta Cana, Dominican Republic. Moreover, the initiative will take place after the company relocates from its current bases in London and New York.
Arkham to Roll Out Crypto Derivatives Exchange
Arkham, established in 2020, operates a platform that tracks blockchain data, providing insights into the entities and individuals involved in crypto market activities. Among its investors are Binance Labs, Altman, Bedrock, and Draper Associates, as listed on Pitchbook.
The upcoming derivatives exchange will aim to compete with leading platforms such as Binance, which remains the largest crypto exchange globally. However, Arkham’s new platform will not be accessible to U.S.-based investors.
According to a report by Bloomberg, the company is in the process of securing a free-trade zone (FTZ) license in the Dominican Republic. This license will allow it to benefit from various tax exemptions and fiscal incentives offered under the country’s FTZ regulations.
Opportunity of Growth Despite Intense Competition
The new exchange is part of Arkham’s goal of capturing a significant share of the crypto market. This sector has witnessed notable shifts due to regulatory scrutiny, particularly aimed at Binance and Coinbase, and the collapse of its competitor, FTX.
Though Binance continues to lead the market in crypto derivatives trading, its dominance has waned to its lowest point in four years, with rivals such as Bybit and OKX gaining ground. Also, Coinbase has maintained its market share despite its legal troubles with the U.S. Securities and Exchange Commission (SEC).
Recent data from CCData shows that crypto derivatives trading on centralized platforms reached $3.07 trillion in September. This accounted for around 71% of total crypto trading volume. Thus, Arkham has reportedly been developing the technology behind its new exchange for the past year to seize the market.
It has also entered discussions with investors in the Middle East to raise up to $100 million to expand its operations. Its current platform has approximately 880,000 monthly active users, which the firm hopes will help in attracting customers to the new venture.
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