FTX.US, the US arm of FTX, headquartered in Hong Kong and one of the rising exchanges of the last period, is acquiring the cryptocurrency derivatives company LedgerX. With this move, it is stated that the exchange has taken a big step towards providing crypto futures, swap, put and call options to US retail customers.
The FTX exchange, which draws attention especially with its investment and advertising campaigns in the USA, decided to acquire the cryptocurrency derivatives company LedgerX and expand its operations. According to reports in the American media, the acquisition is expected to be completed in October. After purchasing LedgerX, the exchange will have the right to use a futures market license, which is crucial for derivatives trading, bypassing the restrictive rules in the US.
According to experts, it is certainly not surprising that the founder and CEO of FTX, 29-year-old Sam Bankman-Fried, made such a move. Because the stock market has made many advertising campaigns, especially in the USA, with the power it has gained from the very profitable derivative transactions in the recent period. In addition to signing an embassy agreement with celebrities, FTX became the stadium title sponsor of one of the NBA teams, the Miami Heat.
“This step in the USA is very normal”
Brett Harrison, chairman of the board of directors of FTX.US, used the following statements about this step of the company:
“There is tremendous interest from both the institutional and retail side for crypto derivatives transactions. Considering the success of FTX in the international crypto derivatives market, there is no normal situation as we want to enter this market in the USA.”
The company gained a great advantage by acquiring.
FTX also gained a huge time advantage by acquiring a crypto derivatives company. With this move, the stock market has overcome the regulation practices that may take years to enter the derivatives market. “Getting into this market by buying LedgerX will be much faster than entering it alone,” said Harrison. However, Harrison did not reveal how much FTX.US paid for this purchase.
LedgerX has 3 licenses that allow it to offer crypto derivatives products. These; designated contract market license (DCM), derivatives clearing organization license (DCO), and clearing enterprise license (SEF). SEF regulates LedgerX’s exchange platform, while DCO allows clearing. The DCM license issued by the Commodity Futures Trading Commission (CFTC) in 2019 also enables the company to offer futures. Currently, the CFTC allows Bitcoin and Ethereum futures, so FTX.US’s services in this area will of course pale in comparison to FTX’s international services.
Harrison said that LedgerX’s board and staff will remain the same, but the name will eventually change, comparing it to the branding of spot cryptocurrency firm Blockfolio as FTX:
“After all, you will enter the FTX application to buy ETH from the spot market or trade ETF futures”
As it will be remembered, FTX bought Blockfolio, which has 6 million users, for 150 million dollars.
Founded in 2013, LedgerX offers a variety of derivative products centered around Bitcoin. The company’s attempt to offer physical Bitcoin futures in 2019 was not accepted by the CFTC. Later this year, two of LedgerX’s founders, Paul and Juthica Chou, were fired from the company.Share this article