Chicago-based ErisX will form the basis of a new Cboe Digital business as the exchange operator looks to cash in on a "unique opportunity" to enter the digital asset spot and derivatives marketplaces.

Cboe has already lined up support from a range of market participants, including retail brokers, crypto-leading firms and sell-side banks, who are expected to form a Digital Advisory Committee tasked with advising Cboe on the ongoing development of the Eris spot and derivatives markets.

The committee includes DRW, Fidelity Digital Assets, Galaxy Digital, Interactive Brokers, NYDIG, Paxos, Robinhood, Virtu Financial and Webull. Some members will buy minority stakes in the Cboe Digital business.

Explaining its decision to jump into the sector, Cboe says that, despite the fact that seven in 10 institutional investors expect to have digital assets be part of their portfolios in the future, a lack of globally consistent regulation and a dearth of sufficiently robust exchange and clearing infrastructure remain major barriers to entry.

It argues that by combining ErisX, with its position as a global market infrastructure provider means it is uniquely positioned to offer a digital asset marketplace focused on regulatory compliance and transparency to help institutions embrace the digital asset class.

Ed Tilly, CEO of Cboe Global Markets, says: "We believe our acquisition of ErisX, coupled with broad industry participation and support, will help us bring the regulatory framework, transparency, infrastructure and data solutions of traditional markets to the digital asset space.

"ErisX has shown an unwavering commitment to improving spot and derivatives crypto trading, and I am confident that together we can not only meet the growing demand for institutional and retail trading solutions but also push the boundaries of digital asset innovation and unlock its next phase of growth."