FTX To Expand Into US Cryptocurrency Derivatives Market With LedgerX Acquisition

FTX US, the associate of FTX (an exchange of crypto derivatives based in Hong Kong), made an announcement on Tuesday stating that it was obtaining Ledger-Holdings-Inc. (the LedgerX’ parent firm, which is an exchange of crypto options and futures structured by CFTC).

LedgerX is a DCO (derivatives-clearing-organization), SEF (swap-execution-facility), and DCM (designated-contract-market) which is regulated by CFTC (Commodity-Futures-Trading-Commission). The move seems to be a greater benefit for the firm from a licensing point of view, and it will provide the FTX-US a chance to take account of crypto derivatives in its products if the step is successful. No information has been provided about the contract’s financial terms.

Brett Harrison, the president of FTX-US, stated that this integration is considered a notable landmark for the instantly increasing business of the United States, as well as it is a significant part of their plan for providing the US consumers the regulated crypto derivatives. He added that the firm believes in its capability to be improved through the big balance sheet as well as product portfolio because LedgerX will expand the ability of the firm to deliver advanced products to crypto traders all over the US.

He further mentioned that the company is enthusiastic about this move to acquire a chance for working with the regulators of the United States to guarantee that it is up to the mark in following the licensing regime for its existing derivatives. In this way, as stated by FTX-US, the mutual entity will work for both the institutional and the retail traders. The company further described that it also expects to allocate a great extent of the resources for the development of a robust relationship between the firm as well as the regulatory community of the United States, particularly the CFTC.

LedgerX’s co-founder and CEO ‘Zach Dexter’ said that market of crypto derivatives in the United States is exceptionally undeserved, and the company needs time to collect sufficient resources for becoming a properly regulated body in accordance with the present frameworks. FTX-US has opted for beneficial initiatives as now the regulators in the US are set to collaborate with the organization regarding the innovative products, and now the responsibility falls on the entire industry to move forward and make partnerships with the agencies such as CFTC.

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