The US subsidiary of cryptocurrency exchange platform FTX has announced that it is working on an agreement to acquire LedgerX, a digital currency futures and options exchange platform.
FTX.US, a subsidiary of the Hong Kong-based crypto derivatives exchange FTX, bought Ledger Holdings. The latter is the parent company of LedgerX-the popular American platform for trading digital asset derivatives. FTX US made the announcement yesterday as it seeks to diversify into derivatives.
LedgerX operates as a designated contract marketplace, swap execution facility and clearing house. It is the first approved digital asset derivatives platform in the United States and is regulated by the Commodity Futures Trading Commission (CFTC). The platform is said to have cleared more than 10 million crypto options and swap contracts during its four years of existence.
The transaction could be finalized in October 2021 for an undisclosed amount, according to reports. However, further financial details regarding the acquisition have not yet been released at the time of writing. The transaction appears to be potentially significant for FTX and, if completed successfully, will allow FTX.US add futures and options to its list of offers in the United States.
LedgerX does not have a wide range of products and focuses mainly on futures, options and swaps on Bitcoin and Ethereum. In concluding the agreement, FTX.US will be better positioned to compete against other U.S. exchanges, including NASDAQ-listed Coinbase and Gemini.
About the acquisition, Brett Harrison, CEO of FTX.US, said : “This acquisition marks an important milestone for our 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 that integrating our technology capabilities, product portfolio and strong balance sheet with LedgerX will enhance our ability to provide innovative products to all U.S. cryptocurrency traders. »
Harrison described the deal as ideal, explaining that it was in the wheelhouse of the exchange [FTX]. The new entity formed by both parties will be aimed at both individuals and institutional clients. He stated that the plan was to continue the existing activities of LedgerX while FTX.US works on the most appropriate way to adopt LedgerX’s regulated futures and options offerings.
The exchange platform will also seek to ensure that good relations with regulators remain intact, as stated in the statement. To this end, it will allocate a large part of its resources to maintaining good relations with regulators in the United States, in particular the CFTC.