Ovex, a Cape Town-based cryptocurrency exchange, announced on Wednesday a strategic investment from quantitative cryptocurrency trading firm Alameda Research, developer of the 5th largest crypto derivatives exchange in the world by trading volume, FTX.
Founded in February of 2019, Ovex is a South African cryptocurrency exchange platform, specializing in OTC trading and arbitrage, offering South Africa’s largest selection of digital asset markets.
The company is dedicated to improving the efficiency of the crypto market in South Africa and improving financial market inclusivity.
Ovex has partnered with several leading cryptocurrency companies and firms, including Invictus Capital, Hyperion, and TrueUSD.
With $270 million (R4 billion) in monthly trading volume and a valuation of over one billion South African Rand (ZAR), Ovex is delivering prime brokerage services to institutions and high net-worth individuals across Africa amid rising demand for crypto access.
“Operating out of one of the continent’s leading cryptocurrency markets in South Africa, OVEX understands the value of digital assets in its economic climate and the novel financial opportunities the platform can offer to both retail and institutional investors,” says Jonathan Ovadia, CEO of Ovex.
“With support and funding from FTX, we are committed to improving market efficiency in South Africa and the wider continent, empowering people here to get the access they deserve in a decentralized ecosystem.”
Over the last few years, Africa has become a cryptocurrency hotspot as its large unbanked population looked for peer-to-peer solutions to provide them access to the retail financial market and empower them to operate their businesses unencumbered by financial instability.
Between July 2019 and June 2020, the total volume of bitcoin traded to and from Africa rose more than 55 percent, and the total number of transactions more than 30 percent, according to Chainanalysis.
The movement is mostly led by three of the continent’s largest economies: Nigeria, Kenya, and South Africa. Now that many citizens are jumping on the cryptocurrency train for their own needs, the asset has garnered interest from larger institutions.
Ovex opens opportunities for all to join the market.
The platform breaks down the barriers of financial exclusivity with its easily accessible cryptocurrency exchange platform, which offers 26 cryptocurrencies and ZAR deposits. Beyond the exchange, Ovex offers unique investment opportunities to both retail, accredited, and institutional investors.
They include:
- OTC Desk: A high-volume, high-liquidity over-the-counter trading venue offers high net-worth individuals and institutional investors a secure, private, and personalized trading service with an option for an extended credit line.
- Bitcoin arbitrage: Allowing investors to earn arbitrage-trading profits on the discrepancy in the bitcoin price between the USD and the ZAR. South African customers can use their annual Single Discretionary Allowance (SDA) of R1 million and Foreign Investment Allowance (FIA) up to an additional R10 million to earn arbitrage trading profits.
- Interest: Account holders can deposit their cryptocurrency into an interest-based account and earn four percent interest annually, paid in the cryptocurrency that’s deposited.
“I’m excited about our strategic investment in Ovex, Africa’s leading OTC desk. Crypto may have a big impact on the future of Africa, and I’m looking forward to seeing where it goes,” says Sam Bankman-Fried, CEO of FTX and Alameda Research.
Backed by $2.5 billion (R37 billion) AUM quantitative cryptocurrency trading firm Alameda Research, FTX is a cryptocurrency exchange built by traders, for traders.
FTX offers innovative products including industry-first derivatives, options, volatility products and leveraged tokens. FTX strives to develop a platform robust enough for professional trading firms and intuitive enough for first-time users.
To find out how Ovex was founded listen to Techcentral Interview: Ovex CEO Jonathan Ovadia
