According to a recent Bloomberg report, blockchain data company Arkham Intelligence, backed by OpenAI founder Sam Altman, is preparing to launch a crypto derivatives exchange in November.
New Crypto Exchange on the Horizon
According to According to a source familiar with the plans, Arkham is moving its operations from London and New York to Punta Cana in the Dominican Republic, in line with the company’s ambition to establish a new location for its stock exchange business, which is mainly will target private investors. However, the platform will not be accessible to US investors.
Arkham was founded in 2020 and has developed a platform that assesses blockchain data to provide insight into the entities and individuals driving activity in the crypto market.
One of the company’s most notable services, especially in 2024, is tracking Bitcoin and Ethereum Exchange Traded Funds (ETFs), which launched in the US in January and July this year, respectively.
The company has monitored the inflow and outflow ETF market for the largest cryptocurrencies, providing insight into investor sentiment towards investing in the digital asset ecosystem, which has seen the Bitcoin price soar to a new all-time high of $73,700 just two months after the US Securities and Exchange Commission (SEC ) these had approved index funds.
Arkham Intelligence’s investor list includes prominent names such as Bedrock, Draper Associates, and Binance Labs. The company wants to leverage its existing data platform, which has approximately 880,000 monthly active users, to attract customers to its new exchange.
Arkham Intelligence Eyes Crypto Market Expansion
Arkham’s new exchange will reportedly operate under a free trade zone license in the Dominican Republic, which offers potential tax exemptions and other tax benefits.
According to the report, as the crypto derivatives market has undergone significant shifts – especially with Binance’s declining market share – Arkham Intelligence is attempting to capture a lucrative market segment.
Despite Binance remaining a dominant player, its market share in trading volume has, as recently, fallen to its lowest level in four years reported by NewsBTC. As of September, Binance held just 36.6% of the total trading volume in the roughly $2 trillion digital asset market.
It has also been revealed that the company has done some development technology for the exchange over the past year and is reportedly in talks to raise $100 million from Middle Eastern investors to further expand the business.
In addition to the technological advancements, Arkham has initiated a branding push by partnering with Turkish soccer team Galatasaray. The two-season sponsorship deal, worth €1.8 million ($2 million) per season, will see Arkham Intelligence’s logo on the sleeves of the team’s players.
Featured image of DALL-E, chart from TradingView.com