Cboe Global Markets In Talks With Robinhood As Potential Equity Partner For Recently Acquired Digital Exchange

Cboe Global Markets, Inc. (Cboe: CBOE) said on Thursday that it has been talking with market players as potential equity partner for its recently acquired digital asset exchange ErisX, later to be renamed Cboe Digital. Among the firm’s options in the crypto space is Robinhood Markets, Inc. (Nasdaq: HOOD).

The stock exchange operator’s acquisition of digital asset spot market operator Eris Digital Holdings was first announced in October 2021 and was recently closed in May 2022. During the period, bitcoin prices have crashed down from its all-time highs to two-year lows.

The firm said it had to to take a US$460 million write-down on the purchase because of the crypto price crash.

The ErisX acquisition also includes the firm’s regulated futures exchange and clearinghouse.

“ErisX was founded with the mission of bringing transparent, well-regulated markets for digital assets and we are excited to further accelerate on this vision with growing support from our partner firms,” said Cboe CEO Ed Tilly.

Along with Robinhood, the global exchange firm is also in discussion with Interactive Brokers, Virtu Financial, Jane Street, Jump Crypto, Optiver, DRW, and IG Group’s tastytrade. When finalized, the list of official equity partners joins commercial firms already partnered with ErisX like Fidelity Digital Assets, Galaxy Digital, NYDIG, and Webull.

On the other hand, Robinhood reported dips on its operating metrics for July, toplined by a 6% month-on-month and 33% year-on-year decline on monthly active users.

Read: Robinhood Posts Weak July 2022 Operating Metrics, Yet Betting Against the Stock Seems Wrong

While the crypto platform has been trading at its record lows, it saw its price jump by 5% following the news.

In June 2022, the Chicago-based options exchange added the NEO exchange to its portfolio of Canadian equity markets: alternative trading system MATCHNow acquired in 2020 and the newly-launched block trading venue Cboe BIDS Canada. Approximately, the firm holds 15.6% of the combined equities market share in Canada. 

Information for this briefing was found via Reuters and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.