A press release has revealed that FTX.US will now be acquiring the CFTC regulated futures and options platform LedgerX via the purchase of its parent company, Ledger Holdings Inc.
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The President of FTX.US, Brett Harrison, said that the purchase makes an important moment for the company’s rapidly expanding business and that it is a key part in bringing crypto derivatives to its users.
“This acquisition marks a significant milestone for our rapidly growing US business and is a key part of our strategy to bring regulated crypto derivatives to our US user base. We believe the integration of our technological capabilities, product portfolio and large balance sheet with LedgerX will enhance our ability to provide innovative products to all US cryptocurrency traders,” said Harrison.
Harrison also added that this move would help them take the next step with US regulators to ensure the company’s compliance going forward.
“We’re excited to take this step and work with US regulators to ensure compliance with the existing derivatives licensing regime. We believe it is incumbent upon the industry to be proactive and to seek out 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 now offer all of these features without needing to go out and secure its own licensing.
The CEO and co-founder of LedgerX, Zach Dexter, said that it took LedgerX a large amount of time and resources to become regulated the way it is and that crypto derivatives are uncommon in the crypto industry.
“US crypto derivatives is an incredibly underserved market, and it took time and resources for us to become a regulated entity under the existing frameworks. FTX.US has taken the view, which we share, that US regulators are ready and willing to partner on innovative products, and it’s the responsibility of the industry as a whole to step up and work with agencies like the CFTC,” said Dexter.