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FTX.US Exchange Acquires Regulated Derivatives Provider LedgerX

Godfrey Benjamin   Sep 01, 2021 03:25 2 Min Read


FTX.US, the United States subsidiary of FTX Derivatives Exchange, has announced the acquisition of LedgerX- a Commodity Futures Trading Commission (CFTC) licensed derivatives and options service provider.

As contained in the official announcement, the financial commitment of the deal remains undisclosed, and it is pending the satisfaction of customary closing conditions.

As a major player in the global cryptocurrency derivatives market, FTX exchange as a brand has grown its numbers, with a notable average daily trading volume of over $18 billion. Under the leadership of CEO Sam Bankman Fried, the exchange pulled over $900 million funding from investors, a capital boost that was available to push forth the company’s expansion and M&A activities.

As a regulated Designated Contract Market (DCM), Swap Execution Facility (SEF), and Derivatives Clearing Organization (DCO), the acquisition of LedgerX will let the companies build on this regulatory backing to expand its offerings to both retail and institutional investors alike. While harnessing the strength of its current customer base, the FTX brand influence is billed to enable the startup to increase its scope in the competitive industry.

Zach Dexter, CEO and Co-Founder of LedgerX, 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, and it's the responsibility of the industry as a whole to step up and work with agencies like the CFTC," 

Most cryptocurrency firms have found maintaining a positive business environment in the United States difficult over time. With regulators like the CFTC and its regulatory demands, many firms have been caught up in the commission’s bad books.

According to an earlier report by Blockchain.news, the BitMex derivatives exchange recently agreed to a $100 million settlement to the CFTC alongside the Financial Crimes Enforcement Network (FinCEN) for allegations bordering illegal business operations.

Known for its strategic acquisitions, assuming ownership of LedgerX will give the FTX brand a free ride to operate in the US without fears of a clampdown.


Image source: Shutterstock

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