A press release revealed that FTX.US will acquire CFTC-regulated options and futures platform LedgerX through the purchase of its parent company, Ledger Holdings Inc. for an undisclosed amount, the deal is expected to close, pending satisfaction of customary closing conditions, the company noted. The acquisition could see FTX.US bring regulated crypto derivatives services to U.S. customers.
President of FTX.US (the U.S. affiliate of the Hong Kong-based crypto exchange) Brett Harrison, said the purchase is an important moment for the company's rapidly expanding business and is a key part of bringing crypto derivatives to its users.
"This acquisition marks a significant milestone for our rapidly growing U.S. business and is a key part of our strategy to bring regulated crypto derivatives to our U.S. user base. We believe the integration of our technology capabilities, product portfolio and large balance sheet with LedgerX will enhance our ability to provide innovative products to all U.S. cryptocurrency traders," Harrison said.
Harrison also added that this move will help them take the next step with U.S. regulators to ensure the company's compliance in the future.
"We are excited to take this step and work with U.S. regulators to ensure compliance with the existing derivatives licensing regime. We believe it is incumbent on the industry to be proactive and seek working relationships with regulatory groups like the CFTC to help shape the future of our industry."
LedgerX is a CFTC-regulated Swap Execution Facility (SEF), a Designated Contract Market (DCM) and a Derivatives Clearing Organization (DCO). The acquisition by FTX.US gives it the ability to offer all of these features without having to go out and secure its own licenses.
LedgerX CEO and co-founder Zach Dexter said LedgerX has spent a great deal of time and resources to become regulated the way it is and that cryptocurrency derivatives are not common in the cryptocurrency industry.
FTX.US will first look to offer futures and options on bitcoin and Ethereum, which LedgerX currently provides, the executive said. Over time, the two teams will work with the CFTC to bring more products to its platform under the FTX.US brand.
"U.S. cryptocurrency derivatives is an incredibly underserved market, and it has taken time and resources to become a regulated entity under existing frameworks. FTX.US has taken the view, which we share, that U.S. regulators are ready and willing to collaborate on innovative products, and it is the responsibility of the industry as a whole to step up and work with agencies like the CFTC," Dexter said.