The move paves the way for Sam Bankman-Fried’s crypto empire to gain a foothold in the restrictive U.S. derivatives scene.
FTX.US Acquires Crypto Derivatives Company LedgerX, a move that could pave the way for FTX to offer US retailers cryptocurrency futures, swaps, call and put options as LedgerX becomes a wholly owned subsidiary of FTX.US said Brett Harrison, Chairman of the Exchange.
His way into the American derivatives scene is not surprising. FTX has amassed a seemingly bottomless war chest through its highly lucrative global crypto derivatives business for advertising campaigns, stadium rebranding, and even referee patches.“There is a lot of institutional and private interest in trading crypto derivatives, and given FTX International's success in the crypto derivatives market, it is only natural that we want to finally get into that market here in the US . "Said Harrison.
FTX Entering this market is easier said than done, however. Buying LedgerX" makes it much faster for us to get into the market going in as if we'd left all alone, "said Harrison. Harrison declined to say how much FTX.US paid on the deal.LedgerXL Licensing LineedgerX has three key licenses that enable it to offer crypto derivative products: a Designated Contract Market (DCM) license, a Derivatives Clearing Organization (DCO) license and an Exchange Execution Facility License (SEF).
DCO authorizes the company's clearing house. The size of the company as the CFTC only allows Bitcoin and Ether contracts. The leadership, staff and board structure of LedgerX will remain the same after the acquisition, but the name will change as the services merge, Harrison said. to FTX. "Ultimately, the goal would be to be able to offer ETH futures or ET H call or put options from your FTX application in addition to buying ETH spots. Read more: LedgerX board member says the company is after that Exclusion of the foundersLedgerX was launched in 2013 and offers a variety of derivatives related to Bitcoin.
An attempt to bring physically settled Bitcoin futures to market in 2019 was rejected by the CFTC, and two of the company's founders, Paul and Juthica Chou, were kicked out of the company later that year. Dexter assumed the position of CEO and returned to the company after a brief stint at Mirror.