FTX.US, the United States-based affiliate of cryptocurrency exchange FTX, has acquired cryptocurrency derivatives platform LedgerX. The price tag of this transaction is undisclosed
FTX.US’ owner, West Realm Shire Services, announced yesterday that the company had completed a sale-and-purchase agreement to acquire LedgerX’s parent company, Ledger Holdings. The firm stated that the deal is expected to close, pending satisfaction of customary closing conditions.
LedgerX is a digital currency futures and options exchange regulated under the Commodity Futures Trading Commission (CFTC), Swap Execution Facility (SEF), and Derivatives Clearing Organization (DCO). The platform can be used by both retail and institutional investors, allowing them to trade cryptocurrency futures with the physical settlement of all contracts.
According to the announcement, the acquisition will have no material impact on LedgerX’s operations as the platform will continue to provide its current services to its existing customer base. It states that the deal will provide FTX.US with the ability to offer options and futures contracts on Bitcoin (BTC) and Ether (ETH) to institutional and retail investors, significantly expanding its trading services.
What they are saying
FTX.US president Brett Harrison stated, “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 also noted that it’s crucial for the industry to strive for relationships with regulators such as the CFTC.
What you should know
The news comes after FTX.US’ affiliate global crypto exchange, FTX, posted the largest private fundraiser in crypto history, raising $900 million in July. The company’s CEO, Sam Bankman-Fried, stated in an interview with Forbes that the crypto derivatives market is a “somewhat misunderstood area” so far, but it has the potential to significantly expand cryptocurrency markets wider by adding liquidity and making them more efficient in general.
FTT, the native token of the FTX exchange is currently trading $50 as of the time of this writing. The price jumped by over 15% as news of the announcement broke.