Singapore Crypto Exchange Bybit Jumps Out Front With Formula One Red Bull Racing Partnership

Bybit, a Singapore-based cryptocurrency exchange, has signed a multi-year partnership deal with Red Bull Racing in what the Formula One team described as the largest-ever annual crypto sponsorship in international sports. 

The U.K.-headquartered racing team, which features the current world champion Max Verstappen, did not disclose the value of the deal in its statement issued on Wednesday. But industry sources said its agreement with Bybit was worth $150 million over a three-year period, which will be paid in a combination of cash and cryptocurrencies. 

The deal involves Bybit becoming the “principle team partner” of Red Bull to distribute its growing collection of digital assets and issue fan tokens. The tokens are a type of cryptocurrencies that help to boost engagement among fans by allowing them to vote on decisions related to a sports team, such as kit designs.

Bybit will also work with Red Bull on a series of initiatives, including the promotion of crypto literacy, green technologies, sustainability, diversity, as well as supporting women in blockchain. The racing team said the partnership will help it build a “more immersive and unique connection” with fans around the world. 

“Red Bull Racing’s unique energy and creativity inspires us,” said Ben Zhou, cofounder and CEO of Bybit, in the statement. “The team has changed the game in the same way that digital assets have changed the global financial system.”

Established in 2018, Bybit offers platforms for cryptocurrency trading and financial investment using digital assets, as well as a marketplace for non-fungible tokens (NFTs). The exchange processed more than $300 million worth of spot trades in cryptocurrencies in the past 24 hours as of Thursday, according to industry tracker CoinGecko. 

Bybit’s tie-up with Red Bull comes as other cryptocurrency trading platforms have also been targeting Formula One to raise their profiles and attract more users. Last year’s Formula One season set a record as the most-watched on U.S. television, attracting an average of 934,000 viewers per race, according to cable sports channel operator ESPN. 

That massive audience base of Formula One has attracted sponsorships from several of the biggest names in the crypto industry. Singapore-based Crypto.com has signed a nine-year deal for the naming rights of the Miami Grand Prix. The company has also partnered with Aston Martin racing team to launch a collection of NFTs. 

Not to be outdone, FTX, the  crypto derivatives trading platform who last year moved from Hong Kong to the Bahamas, has inked a partnership deal with Mercedes-Benz’s Formula One racing team. And Binance, the world’s largest crypto exchange by trade volume, has teamed up with the Alpine team to release fan tokens. (Disclosure: Binance recently announced a strategic investment in Forbes.)