Hassan Maishera
FTX set to acquire LedgerX
FTX.US, the United States arm of the leading cryptocurrency exchange, FTX, announced earlier today that it has agreed to acquire LedgerX, a regulated digital currency futures and options exchange and clearinghouse.
The crypto exchange announced this via a press release earlier today. FTX said “that it executed a sale and purchase agreement to acquire Ledger Holdings Inc., the parent company of LedgerX LLC. ("LedgerX"), a Commodity Futures Trading Commission (CFTC) regulated digital currency futures & options exchange and clearinghouse. The acquisition is anticipated to close, pending satisfaction of customary closing conditions.”
The acquisition would make it possible for the cryptocurrency exchange to start offering futures and options trading services to its customers in the United States. FTX.US had stated that it has plans to offer those services to its customers in the US.
Brett Harrison, President of FTX.US, is excited about the company’s latest acquisition. He stated that “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.”
He added that the CFTC regulatory status of LedgerX is a big plus for FTX as it would help them ensure they operate within the purview of the law. LedgerX is popular within the cryptocurrency space. The firm serves as a CFTC regulated Designated Contract Market (DCM), Swap Execution Facility (SEF), and Derivatives Clearing Organization (DCO). It provides services to retail and institutional investors.
FTX is one of the fastest-growing cryptocurrency exchanges in the world. Led by Sam Bankman-Fried, FTX saw its valuation grow from $2 billion a year ago to currently stand above $18 billion. FTX and LedgerX will work together to create products that meet the needs of both retail and institutional traders.
