In Brief:
- FTX.US will purchase LedgerX, a crypto derivatives exchange.·
- The financial terms of the arrangement are not yet disclosed by the firm.
FTX.US announced today that it would buy Ledger Holdings Inc., the parent company of LedgerX for an undisclosed sum. The deal is expected to close in October, with the satisfaction of customary closing conditions.
The acquisition will not affect any of LedgerX’s operations. It will continue to provide its current offerings to its existing customer base. With this acquisition, FTX.US will be able to offer futures and options contracts to retail and institutional clients.
Brett Harrison, President of FTX.US, said about the acquisition, “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 has cleared over 10 million crypto options and swap contracts since its launch in 2017. It was the first to deploy bitcoin micro contracts, which allowed more precise trading.
The CFTC regulates LedgerX as a Designated Contract Market (DCM). LedgerX is open 24 hours a day, seven days a week to both retail and institutional investors. It offers physical settlement of all contracts, as well as block trading and algorithmic trading for institutional clients.
LedgerX’s CEO and Co-Founder Zach Dexter said:
“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”.
The Company is planning to invest significant resources in building a solid working relationship with the US regulatory community, precisely the CFTC. FTX.US hopes to further drive innovation that is compliant and meets the standards of the US financial services industry.
In July, FTX created history in the crypto-world by closing a $900 million Series B funding round. Recently, it also purchased naming rights of Iconic California Memorial Stadium. It is planning to rename it as “FTX field” in September.
