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FTX.US Enters Derivatives Market with LedgerX Acquisition

UTC by Oluwapelumi Adejumo · 3 min read
FTX.US Enters Derivatives Market with LedgerX Acquisition
Photo: Depositphotos

It is important to note that despite the acquisition, no material impact is expected to occur on LedgerX operations as it will continue to provide its current offerings to its existing customer base.

Users of FTX.US, a leading US-regulated cryptocurrency exchange, can now get crypto derivatives after the group acquired Ledger Holdings Inc, parent company of LedgerX LLC.

West Realm Shire Services announced on Tuesday that it had completed the acquisition of the foremost Commodity Futures Trading Commission (CFTC) regulated digital currency futures & options exchange and clearinghouse.

As at the timing of writing this report, the acquisition is, barring any unforeseen circumstances, anticipated to close, pending satisfaction of customary closing conditions. It is important to note that the financial terms of the deal have not been disclosed.

Speaking on the development, the company’s President, Brett Harrison, explained that the acquisition has a significant event in the history of the company.

“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,” Brett noted.

He further explained that the company management strongly believes the integration of their technological capabilities, product portfolio and large balance sheet with LedgerX will enhance the company’s ability to provide innovative products to all US cryptocurrency traders.

While expressing the excitement of the management, he maintained that they are working with US regulators to ensure compliance with the existing derivatives licensing regime.

“We believe it is incumbent upon the industry to be proactive and to seek out working relationships with regulatory groups like the CFTC to help shape the future of our industry,” he added.

LedgerX is a CFTC regulated Designated Contract Market (DCM), Swap Execution Facility (SEF), and Derivatives Clearing Organization (DCO). LedgerX is available to both retail and institutional investors 24×7 and offers physical settlement of all contracts, block trading and algorithmic trading opportunities for institutional investors.

Launched in 2017, LedgerX has cleared over 10 million crypto options till date and swapped contracts and pioneered the bitcoin mini contracts that enable granular trading.

It is important to note that despite the acquisition, no material impact is expected to occur on LedgerX operations as it will continue to provide its current offerings to its existing customer base.

Speaking on the acquisition, LedgerX CEO and Co-Founder, Zach Dexter, explained that crypto derivatives have an incredibly underserved market but they achieved what they did thanks to time and resources.

“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,”Zach said.

Adding that, “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.”

There are indications that the combined company will look to create products for retail and institutional traders and will put resources toward developing a strong working relationship with the US regulatory community, specifically with the CFTC.

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Oluwapelumi Adejumo

Oluwapelumi is a believer in the transformative power Bitcoin and Blockchain industry holds. He is interested in sharing knowledge and ideas. When he is not writing, he is looking to meet new people and trying out new things.

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