Arkham Intelligence, a blockchain data tracking platform, is set to launch a crypto derivatives exchange next month, targeting retail investors and competing with industry giants like Binance, according to a Bloomberg report.

The new platform will cater to Arkham’s 880,000 monthly active users but will be inaccessible to U.S. customers due to regulatory restrictions. “The exchange will be aimed at retail investors and seek to compete with platforms such as the world’s largest crypto exchange Binance,” Bloomberg reported, citing a person familiar with the initiative.

Backed by OpenAI founder Sam Altman, Arkham is relocating to the Dominican Republic to benefit from the country’s free-trade zone and favorable tax policies. The company has reportedly spent the last year developing the exchange’s technology as it eyes a share of the rapidly growing derivatives market, which accounted for 71% of crypto trading activity in September, totaling $3.07 trillion.

While Binance faces regulatory pressures that have reduced its market dominance, competitors like Bybit and OKX remain key players. Arkham’s challenge will be to break into this market while navigating legal barriers. However, the company’s established user base and tech-driven approach give it an edge.

In addition to the exchange, Arkham has been actively expanding its brand presence, signing a €1.8 million sponsorship deal with Turkish football club Galatasaray. The company is also reportedly raising $100 million from Middle Eastern investors to scale its new venture, positioning itself as a formidable competitor in the crypto derivatives space.

Source: Arkham to launch derivatives exchange, aims to compete with Binance