NYSE owner invests in crypto exchange OKX at $25bn valuation

Crypto exchange OKX has been valued at $25bn following an investment by the owner of the New York Stock Exchange, as mainstream trading venues race to gain a foothold in the digital assets industry.

Intercontinental Exchange said on Thursday it had acquired a stake in OKX in a deal that will see it launch US-regulated futures contracts tied to the exchange’s crypto prices. The size of ICE’s stake was not disclosed.

Wall Street’s push into digital assets comes as traditional businesses seek to compete with crypto companies for trading in new markets and blockchain-based “tokenised” assets.

Jeffrey Sprecher, chair and chief executive of ICE, said the deal will help “accelerate our plans to offer on-chain infrastructure and tokenised assets to US investors”.

OKX is one of the world’s largest crypto exchanges by trading volume, according to data provider CoinMarketCap. Binance is by far the biggest, with a roughly 30 per cent share of the spot crypto market. US-listed Coinbase, another top venue, has a market capitalisation of more than $50bn.

Under the deal, OKX will give its customers access to ICE’s US futures and tokenised equities markets. ICE will also take a board seat at the Seychelles-based company, which last year pleaded guilty to operating without a licence in the US and agreed to penalties of more than $500mn.

NYSE’s owner in October said it will invest up to $2bn into Polymarket, the offshore crypto-based prediction market which has boomed in popularity. Donald Trump Jr is an adviser to Polymarket.

Speaking last month at a conference at Mar-a-Lago hosted by the Trump family’s crypto company World Liberty Financial, NYSE president Lynn Martin described a “lightbulb moment” when she saw S&P 500 futures jump on Polymarket odds suggesting Donald Trump would win the 2024 election.

Rival Nasdaq invested $50mn in Gemini, the crypto exchange founded by the Winklevoss twins in September, as America’s biggest exchange groups both vie for a position in the crypto market.

It also sought regulatory approval for options contracts that allow binary “yes or no” bets on stock indices this week in bets reminiscent of prediction markets.

Crypto exchange Kraken and retail brokerage Robinhood already offer tokenised equity trading to their users in Europe, saying it is better than traditional stock trading because investors can buy and sell around the clock and at weekends.