FTX.US, The US subsidiary of Hong Kong-based crypto exchange FTX has obtained LedgerX’s parent firm.
Through the acquisition, FTX.US may be able to offer regulated crypto derivatives to US customers. The company did not disclose the acquisition’s finance terms, but the deal is expected to finalize in October of this year.
LedgerX, a CFTC-approved cryptocurrency options and futures trading platform that settles physical contracts and has processed over 10 million crypto options and swap contracts, has established itself as a market leader in the crypto derivatives space. The new acquisition by FTX.US, whose parent company just closed the largest crypto fundraising round in history with $900 million, aims to develop retail and institutional derivative products for the cryptocurrency industry. Brett Harrison, president of FTX.US, stated,
“It’s only natural to want to engage the largest capital market in the world inside the US with that same product through all of our existing institutional and retail customers who want to trade these products,”
LedgerX would initially continue to serve existing clients, but the two brands would eventually merge. The agreement may also aid FTX.US’s ascension in the crypto derivatives market.
Would FTX.US Be the Market Leader in the Crypto Derivatives Market in the United States?
FTX.US has made great success in less than a year of operation. While its parent business is on an acquisition binge, signing multiple sports and naming the appropriate deals, the US-based sister firm has made significant progress as well. Due to the high amount of regulatory scrutiny, the US crypto derivatives industry remains mainly undeveloped. The alliance has the potential to propel FTX.US to market leadership, particularly at a time when competition is heating up. According to Zach Dexter, CEO and co-founder of LedgerX,
“The US crypto derivatives market is severely underserved, and it took some time and effort to become a regulated organization under the existing rules. FTX.US has taken the position, which we concur with, that US authorities are willing and able to collaborate on novel products, and it is incumbent on the sector as a whole to step up and collaborate with agencies such as the CFTC.”
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