By
Temitope Olatunji
October 17th, 2023
With the growing crackdown on digital currency trading platforms around the world, FTX Derivatives exchange is quite focused on getting it right with market watchdogs, a move that is currently been shown by its recent acquisitions.
The American subsidiary of FTX Derivatives Exchange, FTX.US has completed the acquisition of Ledger Holdings Inc, the parent company of LedgerX, a Commodity Futures Trading Commission (CFTC) regulated crypto futures and options exchange and clearinghouse. Per the official announcement, the acquisition has led to the rebranding of the name of LedgerX to FTX US Derivatives.
The potential acquisition of LedgerX was first unveiled back in August for an undisclosed sum. The deal was pending regulatory approval at the time, all of which has notably been completed as of today. Following this acquisition, FTX US will automatically receive several operational designations including a CFTC regulated Designated Contract Market (DCM), Swap Execution Facility (SEF), and Derivatives Clearing Organization (DCO).
“The completion of this acquisition is just the first step of many to provide the FTX US user base with access to the best products on the market,” said Brett Harrison, President of FTX US. “It should also be seen as a pivotal moment for FTX US as we continue to execute on our strategy to bring regulated crypto derivatives to our US user base. We believe the integration of the two organizations provides us with not only a technological advantage but also furthers our working relationship with the regulatory community in a positive, constructive and transparent manner.”
As revealed by the trading platform, the product offerings from the new outfit will be available to all of the firm’s customers cutting across both retail and institutional investors. The acquisition will not affect the current operations of FTX.US Derivatives as the firm is billed to continue offering its services to its existing customers.
FTX US Acquisition of LedgerX: Trailing on the Path of Regulation
With the growing crackdown on digital currency trading platforms around the world, FTX Derivatives exchange is quite focused on getting it right with market watchdogs, a move that is currently been shown by its recent acquisitions.
“As the regulatory environment in the crypto ecosystem continues to evolve, we look forward to acting as a resource and an example of how the protections afforded by proper regulatory oversight and licensing can boost consumer confidence and facilitate safe and reliable exchange platforms,” said Zach Dexter, CEO of FTX US Derivatives. “The most important facet of this acquisition of LedgerX is that it allows us to do that. FTX US Derivatives will continue to strive to be a part of the regulation conversation and ensure that the operational standards required by the CFTC are maintained. ”
The parent company acquired Blockfolio, a cryptocurrency platform for tracking and management, for about $150 million back in August last year. The company’s acquisitions, product offerings, and market pursuits have always been in line with regulations, positioning the exchange for a future where regulations will enhance its competitive advantage.
The company is being backed by mainstream investors including but not limited to Tiger Global, and Singapore government-owned investment giant, Temasek. FTX has pulled over $1.4 in funding in the year-to-date period.