Arkham Intelligence Plans to Launch a Cryptocurrency Derivatives Exchange

Backed by investors like OpenAI founder Sam Altman, the startup is relocating its operations from London and New York to Punta Cana in the Dominican Republic.

Arkham Intelligence, a blockchain data and intelligence firm, is set to launch a cryptocurrency derivatives exchange next month, according to a report by Bloomberg.

The startup, which is backed by investors including OpenAI founder Sam Altman, will be relocating its operations from London and New York to Punta Cana in the Dominican Republic for the launch of the exchange. The company is reportedly aiming to serve retail investors with the new platform but will not be opening it up to customers in the United States.

Founded in 2020, Arkham specializes in analyzing blockchain data to uncover information about the entities and individuals involved in cryptocurrency transactions. The company's platform provides insights into the flow of funds, market activity, and the identities of blockchain users, aiming to "deanonymize" on-chain activity.

The move to launch a derivatives exchange is part of Arkham's strategy to capitalize on the growing crypto market, particularly in derivatives, which are financial contracts that derive their value from an underlying asset, such as Bitcoin (BTC).

In July, Arkham Intelligence launched a feature that allows users to connect their Coinbase Wallets to its platform. This integration enables users to track their crypto holdings while Arkham's platform analyzes blockchain transactions to de-anonymize the parties involved.

What is Arkham Intelligence?

Arkham is a blockchain analysis platform that utilizes artificial intelligence to de-anonymize blockchain and on-chain data. The company's platform previously had two main components: the Analytics Platform, which offers analysis on various exchanges, funds, and tokens, and the Intel Exchange, a marketplace that connects users looking to perform intelligent transactions.

The new derivatives platform will reportedly be operating under a Dominican Republic free-trade zone license, which provides tax and other financial benefits, according to Bloomberg.

Arkham's entry into the derivatives market will see it compete with major exchanges such as Binance, Bybit, and OKX, which already offer a wide range of crypto derivatives products to their users.