FTX.US acquires LedgerX, a cryptocurrency derivatives exchange

FTX.US, the American arm of the cryptocurrency exchange FTX, has acquired LedgerX, a regulated exchange specializing in cryptocurrency derivatives.

1) This is probably one of the most exciting announcements we’ve ever had.@ftx_us + @ledgerxhttps://t.co/nQmk2mx3i1

— SBF (@SBF_FTX) August 31, 2021

The deal terms were not disclosed. The parties plan to close it in October.

“We believe the industry should take the initiative and build working relationships with regulators, such as the CFTC, to help shape its future,” said Brett Harrison, president of FTX.US.

The company emphasised that LedgerX would continue to provide its current products and services to existing clients.

The parties plan to develop products for retail and institutional traders, devote significant resources to developing relationships with regulators, and promote innovation in line with the ‘stringent standards of the US financial services industry’.

According to Block Research, in 2021 the volume of cryptocurrency futures фьючерсами and опционами traded was about $23 trillion, compared with spot trading (more than $13 trillion).

In 2019 LedgerX received a license as a designated contract market (DCM) from the CFTC. At that time the platform announced the launch of physically settled Bitcoin futures. The regulator later said it had not granted permission to launch this instrument.

The company accused the CFTC of deliberately delaying consideration of its application to launch a derivatives clearing organization (DCO). Later that year the platform’s founders, Paul and Jyoti Chow, were removed from management following a clash with CFTC Chair Christopher Giancarlo.

LedgerX currently holds DCO licenses and swap execution facility (SEF) licenses from the CFTC, according to the press release.

In August FTX.US announced plans to give clients access to trading cryptocurrency derivatives by the end of 2021.

Follow ForkLog News on Telegram: ForkLog Feed — the full feed, ForkLog — the most important news, infographics and opinions.