With the funding, OVEX aims to deliver prime brokerage services to institutions and high net-worth individuals across Africa amid rising demand for crypto access. OVEX has $270 million in monthly trading volume and a valuation of over one billion South African Rand (ZAR).
According to 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.”
OVEX understands that operating out of one of the continent’s leading cryptocurrency markets in South Africa, the value of digital assets in its economic climate and the novel financial opportunities the platform can offer to both retail and institutional investors.
The funding comes at a time when Africa has become a cryptocurrency hotspot due to its large unbanked population and need for peer-to-peer solutions to provide them access to the retail financial market and empower businesses.
According to Chainanalysis, 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, especially in the three of the continent’s largest economies: Nigeria, Kenya, and South Africa. Many citizens are also turning to cryptocurrency for their own needs, and OVEX aims to open up opportunities for all to join the market as cryptocurrency garners interest from larger institutions.
“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 Samuel Bankman-Fried, CEO of FTX and Alameda Research.
OVEX 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 also offers unique investment opportunities through:
- 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.