Arkham Intelligence Inc., a blockchain data firm backed by high-profile investors including OpenAI founder Sam Altman, is set to launch a crypto derivatives exchange next month, according to a source familiar with the plans. The startup, which is moving its operations from London and New York to Punta Cana in the Dominican Republic, aims to tap into the lucrative crypto derivatives market.
Arkham’s new platform will target retail investors, positioning itself as a competitor to industry giants like Binance. However, the exchange will not be available to U.S. investors and will operate under a free-trade zone license in the Dominican Republic, which offers tax exemptions and other financial benefits. The firm is currently in the process of securing this license.
The company’s cryptocurrency, ARKM, saw a 19% increase to $1.52, following news of the upcoming exchange. Arkham, founded in 2020, specializes in analyzing blockchain data to identify market participants and has attracted backing from investors including Bedrock, Draper Associates, Binance Labs, and Altman.
Arkham’s entry into the derivatives space comes at a time of significant upheaval in the market, following regulatory actions against Binance and the collapse of its rival FTX. While Binance remains the dominant player in crypto derivatives trading, its market share has recently fallen to a four-year low. In September, derivatives trading on centralized exchanges reached $3.07 trillion, making up 71% of total crypto trading volume, according to CCData.
Over the past year, Arkham has internally developed the technology for its exchange and is reportedly in talks with Middle Eastern investors to raise up to $100 million to expand the venture. Its existing blockchain data platform, which boasts 880,000 monthly active users, could provide a strong customer base for the new exchange.
Arkham has also made strides in increasing its visibility through a sponsorship deal with Turkish football club Galatasaray. The two-season agreement, signed in July, will see Arkham’s logo featured on players’ sleeves, costing the company €1.8 million ($2 million) per season. Despite the public attention, a spokesperson for Arkham declined to comment on the exchange’s launch plans.
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