Binomial Secures $25M from Ripple, Launches U.S.-Based Crypto Futures Platform

• Binomial secures $25M from Ripple Labs, launching a regulated perpetual futures trading platform in the U.S. called Botanical.
• Botanical offers regulated alternatives to decentralized exchanges and VPN-based solutions, enhancing security for U.S. crypto traders.
• Ripple’s RLUSD stablecoin will be used to settle futures contracts on the Botanical platform, expanding access to the derivatives market.

Binomial, a U.S. crypto exchange, has successfully raised $25 million in a funding round led by Ripple Labs. This funding supports the launch of Bitnomial’s new perpetual futures trading platform, known as Botanical. Currently, in closed beta, the platform aims to provide U.S. investors with regulated futures trading, including perpetual futures, traditional futures, and options.

Botanical Offers Regulated Alternatives to DEXes

Luke Hoersten, CEO of Bitnomial, emphasized the need for a compliant alternative to decentralized exchanges (DEXes) and VPN-based solutions that many U.S. traders use. Botanical provides a regulated platform for digital asset trading, particularly for XRP and other cryptocurrencies, within the U.S. derivatives market. This approach seeks to bring offshore trading practices to the domestic market, offering users a more secure and compliant experience.

Ripple Labs’ Involvement Strengthens Platform

Ripple Labs, under the leadership of CEO Brad Garlinghouse, played a critical role in supporting Bitnomial’s development of the Botanical platform. The platform will incorporate Ripple’s RLUSD stablecoin to settle perpetual futures contracts, adding a new dynamic to the growing cryptocurrency derivatives market. Garlinghouse acknowledged that Bitnomial’s initiative would provide a fresh market opportunity by offering a compliant trading environment for digital assets.

Legal Dispute with SEC Over XRP Futures

Bitnomial’s growth comes amid an ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). The exchange has filed a lawsuit challenging the SEC’s classification of its XRP futures product as a security. This legal dispute is a result of the broader debate over whether XRP qualifies as a security under U.S. law. Despite this, Bitnomial continues to expand its offerings, aiming to cement its position in the U.S. crypto derivatives market.

In 2020, Bitnomial obtained approval from the Commodity Futures Trading Commission (CFTC), enabling it to offer regulated bitcoin futures and options trading. With the new $25 million funding and the launch of Botanical, Bitnomial seeks to expand its offerings and establish itself as a leading player in the U.S. crypto market.